On Tuesday, Ripple CEO Brad Garlinghouse revealed that the Modern York State Department of Financial Services (NYSDFS) has given final approval to the company’s inaugural stablecoin, RLUSD.
Ripple enters the Stablecoin market
WITH RLUSD releaseRipple hopes to provide a reliable option for customers interested in digital currencies while limiting the volatility associated with its flagship asset, XRP. The certification is a strategic move for Ripple as it seeks to expand its offering and provide customers with a reliable digital currency choice.
To operate effectively in Modern York regulatory climateRipple will likely obtain a constrained purpose trust charter. This card will enable the organization to provide specific digital asset services without the complications of standard banking regulations.
Additionally, NYDFS issues the BitLicense, which allows exchanges such as Coinbase and Robinhood to provide cryptocurrency trading and custody services.
Ripple’s entry into the stablecoin market comes at a time when other companies such as Paxos and Gemini have already received regulatory approval for their stablecoins, PAX and GUSD, respectively.
Keith Grossman, president of Enterprise at MoonPay, expressed confidence in Ripple’s entry into the market, emphasizing the importance of “well-capitalized, highly regulated players” in the changing global financial scene.
Garlinghouse on he stated that lists of exchanges and partners for the modern stablecoin will be published soon, and the public will be notified directly by Ripple once RLUSD comes online.
Garlinghouse calls for clear regulations on cryptocurrencies
Garlinghouse’s statement follows his latest statement appearance on CBS’s “60 Minutes” in which he advocated for clearer regulatory restrictions on the cryptocurrency industry.
The executive stressed the importance of having “clear rules of conduct” to maintain U.S. leadership in cryptocurrency and prevent the industry from migrating to jurisdictions with weaker security. “We have asked for this issue to be resolved. “Just give us clear rules of the road,” Garlinghouse said.
In the interview, Garlinghouse also discussed the current political scene, the transition of President-elect Donald Trump position on Bitcoin. He joked, “Whether it’s a conflict of interest or not, voters consciously said we want this person to be our president.”
Garlinghouse also praised bipartisan action in the U.S. Congress, especially the Fit 21 Act, which he sees as an essential step toward a balanced regulatory environment.
This legislation seeks to transfer some regulatory functions from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), potentially reducing the regulatory burden on cryptocurrency businesses.
In relation to the ongoing XRP case, Garlinghouse briefly responded to allegations that Ripple’s sale of XRP constituted a sale unregistered securities. He boldly stated, “I consider myself very well-read about what constitutes security. That’s why I never considered the idea that XRP could be a security.”
At the time of writing, XRP is trading at $2.26, down 12% in just seven days after hitting a multi-year high of $2.91 on December 3.
Featured image from DALL-E, chart from TradingView.com
