Key Points
- Ripple is set to launch its U.S. dollar-pegged stablecoin, RLUSD, within weeks, potentially challenging the dominance of USDT and USDC in the market.
- CEO Brad Garlinghouse expresses optimism about crypto’s future but criticizes the SEC’s approach, advising against incorporating crypto companies in the U.S. due to regulatory hostility.
Ripple’s Stablecoin Launch on the Horizon
During a fireside chat at Korea Blockchain Week in Seoul, Ripple CEO Brad Garlinghouse revealed that the company is “very close” to launching its U.S. dollar-pegged stablecoin, Ripple USD (RLUSD). “We’re in a private kind of closed beta,” Garlinghouse stated, adding that the launch would occur in “weeks, not months.”
This announcement follows Ripple’s disclosure last month that it had begun testing RLUSD on two blockchain networks. The stablecoin is designed to complement XRP tokens and aims to fill a market gap identified after USDC’s depegging incident 18 months ago.
Garlinghouse explained the rationale behind the stablecoin’s development: “We felt like there was an opportunity for a credible player already working with lots of financial institutions to lean into that market.” The move positions Ripple to compete in a stablecoin market currently dominated by USDT and USDC, which account for approximately 70% and 21% of the total supply, respectively.
Regulatory Challenges and U.S. Market Stance
Addressing questions about a potential initial public offering (IPO), Garlinghouse firmly stated that Ripple has “no interest” in going public in the United States. This decision stems from what he describes as the Securities and Exchange Commission’s (SEC) “pretty hostile” attitude towards the crypto industry.
Garlinghouse cited the SEC’s actions against Coinbase as an example of regulatory inconsistency, noting, “The SEC approved Coinbase going public in the United States, and now the SEC is suing Coinbase for the same things they approved.” This environment has led the Ripple CEO to advise crypto entrepreneurs against incorporating in the U.S., warning of increased legal expenses.
Future Outlook and Political Landscape
Despite regulatory challenges, Garlinghouse expressed optimism about the crypto industry’s next five years. Looking ahead to the upcoming U.S. presidential election, he predicted positive outcomes for crypto regardless of the winner. “I think no matter who wins the United States election, we’ll see new leadership in the U.S. SEC,” Garlinghouse stated.
The Ripple CEO also criticized current SEC Chair Gary Gensler’s impact on the Democratic Party, suggesting that Gensler’s approach to crypto regulation “has hurt his party” in the current election cycle.
As Ripple prepares to launch its stablecoin and navigates the complex regulatory landscape, the company’s moves could significantly influence the future of the crypto market and regulatory frameworks worldwide.
