Ripple’s highly anticipated stablecoin, although not yet launched, has already been labeled by the U.S. SEC as an “unregistered crypto asset,” according to the regulatory agency’s response to Ripple’s opposition. The SEC also highlighted Ripple’s history of selling XRP as an unregistered security, stating that the company has been involved in such sales since 2013. Additionally, the SEC pointed out that Judge Analisa Torres determined that Ripple’s sales of XRP to institutional clients from 2013 to 2020 constituted investment contracts. Ripple plans to enter the stablecoin market and bridge the gap between traditional finance and the crypto sector. However, there are suspicions that the motive behind the stablecoin goes beyond this, with some believing that it is intended to cater to Ripple’s U.S.-based ODL partners. The SEC is seeking a permanent injunction on Ripple’s future ODL-related XRP sales, which, if granted, would allow Ripple to continue offering ODL services in the U.S., but clients would use the forthcoming stablecoin instead of XRP for transactions.
