Coinspeaker
Ripple’s Planned Stablecoin Draws SEC Scrutiny for Unregistered Status

The United States Securities and Exchange Commission (SEC) has now set its sights on Ripple’s planned stablecoin, according to a recent court filing. The Commission believes that Ripple’s proposed cryptocurrency is proof of the company’s continuous disregard for the law.

SEC Argues against Ripple Using Stablecoin

In a brief on May 7, the SEC described the forthcoming stablecoin as an “unregistered crypto asset”. It then argued that the plan points to the possibility that only a permanent injunction will stop Ripple from unregulated offers and activities. The SEC says Ripple has been conducting unregistered institutional sales of XRP and will keep doing so if the court does not issue an injunction.

In addition to targeting the new stablecoin, the SEC dismissed Ripple’s promise to comply with US securities law since it has licenses from several other jurisdictions. According to the brief, “this argument – akin to saying a New York restaurant need not obtain a liqu...