Pro-XRP Lawyer Dismisses SEC’s Claims on Ripple RLUSD Launch

Ripple has recently released RLUSD, enterprise grade stablecoin on global exchanges; the move has reignited discussions about its compliance status. Supported by deposits in US dollar, government bonds, and other cash equivalent instruments, the RLUSD is expected to increase liquidity and usability on the blockchain.

Although the New York Department of Financial Services (NYDFS) gave its green light, the U.S. Securities and Exchange Commission (SEC) has deemed it an ‘unregistered crypto asset’ in the past, causing concern among investors.

Ripple News: Regulatory Uncertainty and Bill Morgan’s Response

The SEC mentioned RLUSD in its reply brief on remedies submitted to the Ripple lawsuit in April 2024, stating it as an unregistered security issuance. Bill Morgan, an attorney for Pro-XRP, replied stating that the SEC made the statement but he did not find it credible.

Morgan pointed to the fact that the SEC has provided false information about cryptocurrencies in the past, including such terms as ‘crypto asset securities,’ which the agency later realized were incorrect in court.

He continued by saying, “Ripple does not care about the statement.”  If it was meant to be a warning or a threat it has been disregarded or worked around.” Morgan also pointed out that the market seems unbothered, for RLUSD is now regulated. The SEC is yet to comment on NYDFS approval on the stablecoin creating more confusion within the market.

Ripple’s Vision for RLUSD and Its Impact on XRP

Ripple President Monica Long recently discussed key implications of RLUSD for the XRP ecosystem. She went ahead to explain that the two assets are very different from each other and serve different purposes. RLUSD emphasizes on increasing the liquidity and funds the decentralized finance, as well as introducing the real-world assets (RWA) tokenization.

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XRP, on the other hand, remains a bridge asset for cross-border transactions, a critical use case in Ripple’s $70 billion payments network. Furthermore, Long also stressed the fact that RLUSD and XRP should not be viewed as competitors to each other, but work in synergy with each other thus ensuring the use of XRP in international payments.

The RLUSD stablecoin will initially be available across major regions, including the Americas, Asia-Pacific, the UK, and the Middle East, through distribution and exchange partners. RLUSD is to help  Ripple create a connection between fiat currencies and the blockchain technology to improve the cross-border payment system while diversifying the application of the XRP Ledger.

Market Reaction and XRP Price Performance

XRP’s price showed a positive response to recent developments, with the asset trading at $2.62, up 6.36% over the past 24 hours. The price of XRP rose steadily to almost $2.70 before stabalising at the current rate. The price rise also correlates to the trading volume which scaled up by 40.48% and reached the level of 16,63 billion.

The market cap climbed to $149.83 billion, reinforcing XRP’s position as the third-largest cryptocurrency. Analysts point to growing confidence in Ripple’s ecosystem, particularly following RLUSD’s launch and Ripple’s regulatory resilience.

Technically, XRP broke through resistance at $2.55, signaling bullish momentum. Key resistance remains at $2.70, with support forming around $2.55. Analysts note that sustained volume and positive sentiment could push XRP to test higher price levels in the near term.