SEC Slams Ripple’s Latest Stablecoin Project as a Security Offering

• Despite its current SEC lawsuit, Ripple intends to launch a stablecoin that will compete with Tether and CENTER and reach a market capitalization of an astounding $3 trillion by 2028.
• Though the price of XRP has somewhat dropped, expectations are high that Ripple’s new stablecoin will drive both XRP and the CTF token to previously unheard-of heights.

For the past four years, Ripple has been embroiled in a legal whirlwind with the SEC, with no end in sight. The continuous conflicts have stunted the growth and innovation potential of Ripple, especially affecting the value of its native token, XRP.

As per the most current CoinMarketCap data, the price of XRP is $0.5159, down 1.06% in the last 24 hours and a little 0.54% in the last week.

Strategic Turnabout of Ripple to a New Stablecoin

To get above the restrictions imposed by its legal disputes, Ripple declared last month that it will be introducing a stablecoin linked to the US dollar. This action is seen as a direct target market for market leaders like Tether and CENTER, a Coinbase and Circle partnership.

According to Brad Garlinghouse, CEO of Ripple, the stablecoin is made to fend off de-pegging incidents that have in the past caused significant losses for stablecoin holders.

But the SEC, which labels the impending stablecoin as an unregistered securities offering, like XRP, has opposed Ripple’s stablecoin goals. Maintaining that Ripple has mostly sold unregistered securities since 2013, the regulatory authority keeps its strict position.

Opinions of Investors and Market Speculation

Investors are feeling more hopeful despite the legal entanglements because of Ripple’s bold goal of valuing their stablecoin at $3 trillion by 2028, following reports from CNF. A prominent proponent of XRP, Brett Hill, said that the price of XRP will increase significantly to $62.75 if it happens.

: Exciting news from RIPPLE! The company has just announced its ambitious goal of reaching $3 trillion by 2028 with their Stablecoin. This projection has caused a significant surge in the price of #XRP, which is now valued at $62.75!

But that's not all. The top defi token on… pic.twitter.com/hMuM0VULn0

— Brett Hill (@Brett_Crypto_X) May 10, 2024

Furthermore, if CTF token, the top defi token on XRPL, manages to catch just $10 billion from the anticipated inflows into XRPL, it is expected to explode, maybe rising from $0.95 to $374.25 per token.

According to a prior report by Crypto News Flash, pro-XRP lawyer MetaLawMan hinted that Judge Torres would overturn the SEC’s $2 billion sentence against Brad Garlinghouse’s Ripple.