Ripple Issues Important Update and Warning About RLUSD Stablecoin

Ripple CEO: SEC’s XRP ETF Decision Signals Crypto Progress


Ripple recently provided a critical update on the highly anticipated RLUSD stablecoin, pegged 1:1 with the US dollar.

Ripple’s CEO, Brad Garlinghouse, explained that RLUSD aims to bridge traditional finance and crypto. Experts predict that its release could positively impact XRP’s value.

Ripple Provides Critical Clarification


Last week, Ripple minted over 800,000 RLUSD tokens on the XRP Ledger (XRPL) and Ethereum, sparking speculation about the stablecoin’s release.

Ripple clarified that RLUSD is still in private beta testing. They warned users to avoid false claims about its availability.

Ripple stated, “RLUSD is in private beta. On-chain activity may be visible, but it’s not available yet. Stay cautious and avoid scams!”

This warning was well-received by the crypto community, especially on social media. Influencers like Vet urged users to stay vigilant against scammers pretending to distribute RLUSD.

Read Also: Ripple’s Legal Struggles Continue as SEC Seeks to Challenge Ruling


Despite the excitement around RLUSD, Ripple is facing scrutiny from the U.S. Securities and Exchange Commission (SEC). The SEC has labelled RLUSD an “unregistered crypto asset,” which could lead to more legal challenges.

Ripple has been in a legal battle with the SEC since December 2020. The SEC accused Ripple of an unregistered securities offering by selling XRP.

In August 2024, Judge Analisa Torres ruled that secondary XRP sales to retail investors didn’t violate securities laws. Ripple was still fined $125 million for other violations, much less than the $2 billion initially sought by the SEC.

Both parties have until October 7 to file appeals. Legal experts believe the SEC is more likely to challenge the ruling.

XRP Community Reaction and Future Outlook
The upcoming launch of RLUSD has drawn significant interest in the crypto world. Many believe it could boost XRP’s price. RLUSD’s ability to operate on both XRPL and Ethereum strengthens Ripple’s position in the evolving financial landscape.

However, concerns about SEC regulations might impact the stablecoin’s future. Ripple’s warning to the community about RLUSD’s status highlights the company’s challenges from regulators and bad actors.

We will need to watch these factors as the RLUSD launch draws closer.

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Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.

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