Ripple Launches RLUSD Stablecoin Amid Ongoing Legal Battle with SEC

San Francisco-based blockchain company Ripple has announced the launch of its new USD-pegged stablecoin, RLUSD, amidst continued uncertainty surrounding its long-running legal dispute with the U.S. Securities and Exchange Commission (SEC).

RLUSD Launch and Partnerships

Ripple unveiled RLUSD as an “enterprise-grade” stablecoin designed for institutional use cases like cross-border payments, asset tokenization, and decentralized finance. The company has partnered with major exchanges including Uphold, Bitstamp, and MoonPay to distribute RLUSD globally.

“With our initial exchange partners, the clear utility and demand for RLUSD, and a strong focus on regulatory compliance, Ripple’s stablecoin is poised to become the gold standard for enterprise-grade stablecoins,” said Ripple CEO Brad Garlinghouse.

RLUSD will be issued under a New York Trust Company Charter, with Ripple assembling an advisory board that includes former FDIC Chair Sheila Bair to guide its rollout. The stablecoin will initially launch on both the XRP Ledger and Ethereum blockchains.

SEC Appeal Creates Uncertainty

However, the RLUSD launch comes as Ripple continues to face legal challenges from the SEC. Earlier this month, the regulator filed a notice to appeal Judge Analisa Torres’ July 2023 ruling that programmatic sales of XRP did not violate securities laws.

Ripple’s Chief Legal Officer Stuart Alderoty provided an update on the appeal process in an interview with Fox Business. According to Alderoty, the SEC is expected to file its pre-argument statement (Form C) on October 16th, detailing which aspects of the ruling it plans to challenge. Ripple will then have 7 days to file its own Form C for a cross-appeal.

The full briefing process could extend into July 2025, prolonging the uncertainty for XRP investors. Many experts predict the SEC will focus its appeal on overturning the programmatic sales ruling specifically.

XRP Price Remains Constrained

The ongoing legal battle continues to weigh on XRP’s price action. While the broader crypto market has seen gains, with Bitcoin approaching $70,000 amid ETF inflows, XRP has struggled to break above the $0.55 level since early October.

As of October 16th, XRP was trading at $0.5401, down 1.20% over the past 24 hours. The token has failed to recapture previous highs amid uncertainty over the SEC appeal.

Technical analysis indicates XRP is trading in a range between $0.50 and $0.55. A break above resistance at $0.5550 could signal a more significant move higher, while support remains around the $0.5320 level.

Looking Ahead

As Ripple pushes forward with RLUSD and its broader payments solutions, the company’s legal battle with the SEC looms large over its future. The appeal process is expected to drag on for months, if not years.

For now, Ripple maintains that RLUSD and its other offerings provide clear utility separate from XRP. However, the final outcome of the SEC case could have major implications not just for Ripple and XRP, but for the regulatory treatment of cryptocurrencies in the United States more broadly.