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 <p class="paragraph">The US Securities and Exchange Commission (SEC) has targeted Ripple‘s proposed <a rel="noopener noreferrer nofollow" title="stablecoin" href="https://thebittimes.com/tag/stablecoin.html">stablecoin</a> in its latest <a rel="noopener noreferrer nofollow" title="court" href="https://thebittimes.com/tag/court.html">court</a> <a rel="noopener noreferrer nofollow" title="filing" href="https://thebittimes.com/tag/filing.html">filing</a> against the company. In a May 7 redacted remedies reply brief, the SEC described the <a rel="noopener noreferrer nofollow" title="planned" href="https://thebittimes.com/tag/planned.html">planned</a> token as an “<a rel="noopener noreferrer nofollow" title="unregistered" href="https://thebittimes.com/tag/unregistered.html">unregistered</a> <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> <a rel="noopener noreferrer nofollow" title="asset" href="https://thebittimes.com/tag/asset.html">asset</a>.”</p>
 <p class="paragraph">Notably, the regulator did not explicitly mention a “stablecoin” in its filing. Instead, the SEC referenced Ripple’s press release of April 4 announcing the issuance of the dollar-pegged digital asset. The company revealed its intention to issue a stablecoin in April but has not provided further details about the token since then.</p>
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   <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
    <p lang="en" dir="ltr">1/ The stablecoin market is booming – around $150B today, and projected to soar past $2.8T by 2028. There's a clear demand for trust, stability, and utility. <br><br>That's why later this year we’re launching a stablecoin pegged 1:1 to the USD on the XRP Ledger and Ethereum.…</p>— Ripple (@Ripple) April 4, 2024
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 <p class="paragraph">Moreover, the documents argue that this proposed stablecoin is further evidence that Ripple will continue to engage in unregulated activities if a permanent injunction is not granted.</p>
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  <p class="paragraph">“Courts readily enter injunctions in such cases because they indicate a higher likelihood of repetition. It [Ripple] also plans to issue a new unregistered crypto asset. See Apr. 4, 2024 Press Release (Ex. 1). And the Court already found that Ripple’s ODL Institutional Sales up to 2020 violate the law.”</p> <cite>– Securities and Exchange Commission</cite>
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 <h2 class="wp-block-heading" id="h-ripple-s-xrp-sell-offs-through-the-sec-lens">Ripple’s XRP sell-offs through the SEC lens</h2>
 <p class="paragraph">The SEC has insisted that Ripple’s primary business has been the <a rel="noopener noreferrer nofollow" title="unregistered" href="https://thebittimes.com/tag/unregistered.html">unregistered</a> institutional sales of XRP, and it will continue to do so if an injunction is not granted.</p>
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  <p class="paragraph">“Ripple’s ongoing business places it in a position where “violations could be anticipated.” (…) Ripple’s primary business continues to be, as it has been since 2013, <a rel="noopener noreferrer nofollow" title="unregistered" href="https://thebittimes.com/tag/unregistered.html">unregistered</a> sales of XRP.”</p> <cite>– Securities and Exchange Commission</cite>
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 <p class="paragraph">In particular, Finbold monitors and reports the company’s monthly sell-offs, which follow a pattern and are publicly available data. First, Ripple unlocks 1 billion XRP from escrows under its control on the first day of every month. Later, the treasury account reserves around 20% of the unlocked amount for its monthly sales in strategic moments.</p>
 <h2 class="wp-block-heading" id="h-sec-proposes-2-billion-fine">SEC proposes $2 billion fine</h2>
 <p class="paragraph">The SEC has also insisted that the Court impose a heavy penalty on Ripple to deter the company and other copycats. The regulator seeks almost $2 billion in fines from Ripple, but the crypto firm contends that the Court should reject this demand, proposing a civil penalty not exceeding $10 million.</p>
 <p class="paragraph">On that note, the company has sold over $100 million in XRP monthly for years. Therefore, each month’s sell-off is over 10 times higher than Ripple’s total proposed civil penalty for, according to the SEC, 11 years of business.</p>
 <p class="paragraph">Ripple chief legal officer Stuart Alderoty has criticized the SEC’s filing as baseless, saying it was another example of the regulator’s failure to apply the law. Alderoty also noted the SEC’s disregard for crypto frameworks in other jurisdictions.</p>
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    <p lang="en" dir="ltr">More of the same from the SEC — failing to faithfully apply the law and trying to pull the wool over the Judge’s eyes. The good news is that we are closer than ever to putting this lawsuit behind us, though unfortunately, many are just starting the journey. We trust the Court… https://t.co/JGhxAtOuk1</p>— Stuart Alderoty (@s_alderoty) May 7, 2024
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 <p class="paragraph">The regulator has also disagreed with Ripple’s assurance that it would not violate US securities law because it has licenses in other jurisdictions. Interestingly, the SEC’s lawyer wrote:</p>
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  <p class="paragraph">“This argument – akin to saying a New York restaurant need not obtain a liquor license because it obtained a fishing license in California – is absurd.”</p> <cite>– Securities and Exchange Commission</cite>
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 <h2 class="wp-block-heading" id="h-xrp-price-analysis">XRP price analysis</h2>
 <p class="paragraph">As of this writing, XRP trades at $0.52 per token, down 2.76% in the last 24 hours. It is possible that the SEC’s recent <a rel="noopener noreferrer nofollow" title="filing" href="https://thebittimes.com/tag/filing.html">filing</a> could create further selling pressure from Ripple’s holdings and other <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>currency investors.</p>
 <figure class="wp-block-image size-full"><img decoding="async" width="947" height="772" src="https://cdn.thebittimes.com/images/2024/05/08/bda458d2f088101ca066465f0a091145.webp" alt class="wp-image-174706" srcset="https://cdn.thebittimes.com/images/2024/05/08/bda458d2f088101ca066465f0a091145.webp 947w, https://cdn.thebittimes.com/images/2024/05/08/bda458d2f088101ca066465f0a091145.webp 300w, https://cdn.thebittimes.com/images/2024/05/08/bda458d2f088101ca066465f0a091145.webp 768w" sizes="(max-width: 947px) 100vw, 947px">
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   Ripple (XRP) 7-day price chart. Source: Finbold
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 <p class="paragraph">In conclusion, XRP investors and Ripple supporters eagerly awaited the announced stablecoin, which could now be postponed considering these current developments. This legal battle has lasted for years, and traders have constantly used them to bet on the token’s positive or negative price performance.</p>
 <p class="paragraph">Thus, traders must play cautiously in the sight of further regulatory scrutiny by the United States authority.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/sec-labels-ripple-s-planned-stablecoin-as-an-unregistered-crypto-asset-in-court-filings-tbt87773.html">https://thebittimes.com/sec-labels-ripple-s-planned-stablecoin-as-an-unregistered-crypto-asset-in-court-filings-tbt87773.html</a></p>

SEC labels Ripple’s planned stablecoin as an ‘unregistered crypto asset’ in court filings

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