Ripple’s CEO, Brad Garlinghouse, delivered a significant announcement at the South Korea Blockchain Week, revealing that Ripple’s latest stablecoin, Ripple USD (RLUSD), pegged to the US dollar, is set to launch within weeks. This comes as the stablecoin undergoes a closed beta phase, with its release imminent. Garlinghouse also took the opportunity to critique the US Securities and Exchange Commission (SEC) during his speech.
RLUSD Nears Public Release
Speaking in Seoul, Garlinghouse confirmed that RLUSD is currently in a closed beta and expressed the company’s readiness for its official launch, stating, “We are in a special kind of closed beta phase. RLUSD has been minted within this framework. It will definitely be released soon. Not weeks or months later.”
This announcement follows Ripple’s testing of RLUSD on two Blockchain networks, showcasing its ambition to bolster Ripple’s existing XRP coin. Garlinghouse emphasized the favorable timing of this development, noting how the withdrawal of USDC from the market 18 months ago allowed Ripple to position itself as a formidable player in the stablecoin market, which USDT and USDC currently dominate with market shares of 70% and 21%, respectively.
Why Did Garlinghouse Criticize the SEC?
Despite the promising opportunities that RLUSD presents, Garlinghouse voiced his reluctance towards pursuing an initial public offering (IPO) in the US due to the SEC’s antagonistic stance towards the crypto industry. Highlighting the SEC’s contradictory behavior—like approving Coinbase’s IPO and subsequently suing the exchange—he advised entrepreneurs to think twice before starting crypto companies in the US.
Garlinghouse forecasted a change in the SEC’s leadership regardless of the upcoming US presidential election results. He criticized SEC Chairman Gary Gensler for actions that he claims have harmed bipartisan support. Additionally, he labeled the SEC’s enforcement actions against the NFT marketplace OpenSea as “unfortunate,” arguing that NFTs should not be classified as securities. Garlinghouse remains optimistic about the future of crypto, pinning hopes on legislative clarity driven by elected officials.
Key Takeaways for Crypto Enthusiasts
Concrete insights can be drawn from Garlinghouse’s speech, particularly for those involved in the crypto sector:
- Be cautious about establishing crypto ventures in the US due to regulatory uncertainties.
- Alternative stablecoins like RLUSD could offer more stability and credibility in the market.
- Changes in SEC leadership may occur soon, potentially impacting regulatory approaches.
- NFT marketplaces might face less stringent regulations if NFTs are not treated as securities.
Conclusion from the Court Decision
Garlinghouse also addressed Ripple’s own legal battle against the SEC, celebrating a recent court ruling that ordered Ripple to pay a $125 million fine, significantly reduced from the SEC’s proposed $2 billion. He hailed the decision as a victory and reaffirmed his belief that Ripple is on the right side of the law.
