Ripple Labs’ RLUSD stablecoin is reportedly on the brink of receiving approval from the New York Department of Financial Services (NYDFS).
Interestingly, this approval could come as soon as next week, ahead of its anticipated launch on 4 December 2024!
According to a Fox News report dated 29 November 2024, the potential green light from NYDFS could mark a pivotal moment for Ripple.
The news of potential NYDFS approval has already had a notable impact on XRP, Ripple’s associated digital asset.
In fact, XRP experienced a substantial price surge. It climbed from $1.45 on 28 November 2024 to $1.88, marking an impressive 30% increase.
Does the price movement show investor confidence in Ripple’s strategic direction and regulatory progress?
Ripple: A Critical Player, In Partnership With Major Exchanges Like Bitstamp, MoonPay, CoinMENA
XRP, 1,000 times faster and 1,000 times cheaper than #Bitcoin, when paired with @Ripple’s soon to be released #RLUSD Stablecoin, a tool our U.S. Treasury recently deemed a vital liquidity product backed by U.S. Treasury Bills, America and the world dodges economic chaos &… pic.twitter.com/vmL5pS16b1
— Rob Cunningham | KUWL.show (@KuwlShow) November 20, 2024
Ripple’s partnerships are crucial for facilitating the widespread adoption and trading of RLUSD.
Keith Grossman, President of Enterprise at MoonPay,noted that the entry of a well-capitalized and regulated player like Ripple into the global stablecoin marketplace is timely, particularly with the impending implementation of MiCA (Markets in Crypto Assets) regulations in Europe.
The anticipated approval of RLUSD by NYDFS comes at a time when Ripple is actively expanding its cross-border payment solutions using both RLUSD and XRP.
This dual approach aims to enhance transaction speed, efficiency, and utility for global customers.
Furthermore, Ripple plans to conduct regular third-party audits of RLUSD’s reserves and publish monthly reports to ensure transparency and build trust among users.
However, the company continues to navigate ongoing regulatory challenges with the US Securities and Exchange Commission (SEC).
Explore: Bitwise Rebrands XRP ETP as Ripple Makes Investment in GXRP
Embroiled In Legal Battles With SEC Since December 2020
The company is fighting allegations of selling unregistered securities.
While a judge ruled that retail sales of XRP do not constitute securities, the SEC continues to challenge this decision through appeals.
Moreover, the outcome of this legal battle could have far-reaching implications for Ripple and the broader cryptocurrency industry.
In parallel with its legal challenges, the company is also addressing regulatory scrutiny over its RLUSD stablecoin.
In May 2024, the SEC filed a court document asserting that RLUSD qualifies as an “unregistered crypto asset.”
Explore: Ripple CEO Celebrates SEC Win, Calls It Start of ‘Crypto Voter’ Movement
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