XRP News Today: Ripple’s RLUSD Stablecoin Draws SEC’s Attention Again

XRP Steadies but Remains Below $0.60

On Saturday, August 10, XRP gained 0.55%, closing at $0.5840 after sliding by 5.91% on Friday, August 9. The broader crypto market advanced by 0.33% on Saturday, rising to a market cap of $2.088 trillion.

Ripple Verdict Resonates

XRP and Ripple remained a talking point following the final judgment in the SEC vs. Ripple case.

Judge Analisa Torres ordered Ripple to pay a civil penalty of $125,035,150 for selling unregistered XRP to institutional investors. Additionally, Judge Torres granted the SEC’s request for an injunction prohibiting XRP sales to institutional investors. The court verdict coincided with Ripple announcing the testing of its stablecoin, RLUSD.

RLUSD – Testing Begins

On Friday, August 9, Ripple announced the start of testing its stablecoin, RLUSD, stating,

“Testing, testing…RLUSD! We’re excited to share that Ripple USD (RLUSD) is now in private beta on XRP Ledger and Ethereum mainnet. RLUSD has not yet received regulatory approval and therefore is not available for purchase or trading – please be cautious of scammers who claim they have or can distribute Ripple USD.”

However, the SEC has warned that the launch of RLUSD would violate US securities laws.

RLUSD and the US SEC

In April 2024, the SEC filed its remedies-related reply brief, reinforcing its case for a punitive penalty and injunction against Ripple for violating US securities laws.

The SEC’s reply brief referenced Ripple’s plans to launch a stablecoin, labeling it the issuance of a new unregistered crypto asset.

Pro-crypto lawyer Bill Morgan commented on Ripple’s announcement, saying,

“Ripple states that: RLUSD has not yet received regulatory approval. But Ripple is seeking regulatory approval. This is a big deal. I can think of certain well-known stablecoins that do not enjoy any regulatory approval.”

The SEC and Ripple could enter another legal battle if the SEC disapproves RLUSD. RLUSD could play a significant part in Ripple’s US expansion plans following the injunction prohibiting XRP sales to institutional investors.

As XRP investors consider the prospects of a Ripple stablecoin, uncertainty about SEC plans for an appeal lingers.

News of the SEC approving RLUSD and the SEC ending its plans to appeal the Programmatic Sales of XRP ruling could boost XRP demand. In July 2023, XRP surged to $0.9327 in response to the Programmatic Sales ruling. However, fears of an appeal against the Programmatic Sales ruling dragged XRP below $0.45 in August 2023.

Investors should remain alert, as appeals could adversely impact XRP price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP sat well above the 50-day and 200-day EMAs, affirming the bullish price signals.

A break above $0.60 could give the bulls a run at Wednesday’s high of $0.6437. A return to $0.6437 could signal a move toward the $0.6609 resistance level.

SEC vs. Ripple case-related news and SEC activity require consideration.

Conversely, a drop below the $0.5739 support level could bring the 50-day and 200-day EMAs into play.

With a 14-day RSI reading of 53.84, XRP may break above the $0.6609 resistance level before entering overbought territory.