Ripple CEO Brad Garlinghouse announced the upcoming launch of a new stablecoin, Ripple USD (RLUSD), at the Korea Blockchain Week event in Seoul. The stablecoin aims to address market needs following USDC's depegging 18 months ago.
RLUSD Announcement
The RLUSD stablecoin, set to launch soon, is currently in a closed beta phase. It is designed to complement Ripple's existing XRP tokens and will be available on two blockchain networks. Garlinghouse emphasized that RLUSD is intended to meet market needs, especially after USDC's depegging a year and a half ago.
Criticism of the SEC
Despite the positive news about the stablecoin, Brad Garlinghouse expressed strong criticism of the U.S. Securities and Exchange Commission (SEC). He stated that Ripple has no plans for an initial public offering (IPO) in the U.S. due to what he described as a 'hostile' regulatory environment. Garlinghouse also advised other crypto entrepreneurs against incorporating in the U.S., citing the SEC's contradictory actions, such as approving Coinbase's IPO and then suing the exchange for the same practices it had approved.
Future Prospects
Garlinghouse also discussed the recent enforcement action by the SEC against the NFT marketplace OpenSea, calling it 'unfortunate' and suggesting that NFTs should not be classified as securities. He expressed hope that legislative clarity might come from elected officials rather than the SEC in the future, highlighting the Financial Innovation and Technology for the 21st Century Act (FIT 21) as a positive development.
The launch of RLUSD by Ripple could significantly impact the stablecoin and cryptocurrency market, offering an alternative following USDC's depegging. However, according to Garlinghouse, the path to legalizing crypto initiatives in the U.S. remains challenging due to the current regulatory environment.
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