Ripple issues an important warning for its upcoming Stablecoin: details

TL;DR

Ripple warned users to beware of false claims that its stablecoin is live. The SEC labeled the product an unregistered asset, adding to its ongoing legal disputes with the company. Watch out for the XRP army

Earlier this year, Ripple announced that it will launch a stablecoin pegged 1:1 to the US dollar. It will be called RLUSD and will be available on XRP Ledger (XRPL) and Ethereum. According to CEO Brad Garlinghouse, the product could serve as a bridge between the cryptocurrency industry and traditional finance, while numerous analysts believe that its eventual launch could positively affect the price of XRP.

Last week, the Ripple team minted over 800,000 RLUSD in XRPL and Ethereum, representing 99% of the total supply. This led to speculation that the stablecoin is already live.

The company, however, assured that it is still in the private beta testing phase. He also warned users to beware of dubious individuals who claim otherwise.

PSA: Ripple USD (RLUSD) is still in private beta, and while you may see activity on the chain, it is not yet available. Beware of anyone claiming to distribute #RLUSD.

Stay tuned for the latest updates and watch out for scams! https://t.co/P1scOUchWz

— Ripple (@Ripple) September 30, 2024

Numerous X users thanked Ripple for the warnings. The popular figure in the Vet community was among those who reacted under the post, saying:

“Unfortunately, a necessary PSA. Even accounts with a gold verification mark are impersonating and scamming people. Definitely be on the lookout, and best to do nothing, click no links, and wait for sources officers”.

Controversy with the SEC… Again

Ripple’s plans to introduce a stablecoin caused quite a stir in the cryptocurrency space. However, it was not welcomed by everyone, with the US Securities and Exchange Commission (SEC) describing it as a “new unregistered crypto asset”.

This is not the first fight between the entities. For the uninitiated, the SEC sued Ripple in December 2020, accusing it of conducting an unregistered securities offering by selling XRP tokens. The case went through numerous developments over the years, reaching a major milestone in August 2024.

Judge Torres then determined that sales of XRP in secondary markets to retail investors did not constitute securities transactions. However, it ordered Ripple to pay $125 million for violating certain securities laws.

The figure represents a massive discount on the $2 billion initially sought by the regulator, prompting many to hail the ruling as a major victory for Ripple. Both sides have until Oct. 7 to appeal, and the SEC seems more likely to do so.

In recent weeks, rumors about this potential scenario have increased. American lawyer Fred Rispoli, for example, believes the chance of an appeal is 60%.

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