Emily Walker
On Tuesday, Brad Garlinghouse, the CEO of Ripple, announced that the New York State Department of Financial Services (NYSDFS) has officially approved the company’s first stablecoin, RLUSD.
Ripple Launching Stablecoin
With RLUSD, Ripple aims to offer a stable alternative for customers interested in digital currencies, minimizing the volatility often linked to its main asset, XRP. This development is part of Ripple’s strategy to expand its services and deliver a reliable digital currency solution for users.
To navigate the regulatory landscape of New York, Ripple is expected to acquire a limited purpose trust charter. This charter will enable the company to provide specific services related to digital assets without the complexities of traditional banking regulations.
Additionally, the NYDFS issues BitLicenses that allow exchanges like Coinbase and Robinhood to carry out cryptocurrency trading and custody operations.
Ripple’s move into the stablecoin market follows similar regulatory approvals for other players in the space, such as Paxos and Gemini with their stablecoins PAX and GUSD, respectively.
Keith Grossman, president of Enterprise at MoonPay, conveyed optimism about Ripple entering the market, emphasizing the need for “well-capitalized, highly regulated players” in the evolving global finance framework.
Garlinghouse also mentioned that details regarding exchange and partner listings for RLUSD will be shared soon, and the public will receive updates from Ripple when the stablecoin launch occurs.
Garlinghouse Advocates for Clear Regulations
This announcement comes on the heels of Garlinghouse’s recent interview on CBS’s “60 Minutes,” where he called for clearer regulations in the cryptocurrency sector.
The CEO highlighted the necessity of establishing “clear rules of the road” to help maintain the United States’ position as a leader in the crypto space and to avert the industry’s shift to areas with lax regulations. “We’ve asked to be regulated. Just give us clear rules of the road,” he asserted.
During the interview, Garlinghouse also reflected on the political climate, specifically President-elect Donald Trump’s evolving views on Bitcoin. He humorously remarked, “Whether or not it’s a conflict of interest, the voters have knowingly said we want this person to be our president.”
Moreover, he commended bipartisan efforts in Congress, especially the Fit 21 bill, which he views as a significant advancement toward establishing a fair regulatory environment.
This bill intends to shift some regulatory responsibilities from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), which could alleviate some regulatory pressures on cryptocurrency firms.
In response to ongoing discussions about the XRP case, Garlinghouse addressed allegations concerning Ripple’s XRP sales being classified as unregistered securities. He confidently stated, “I believe I am quite knowledgeable about what constitutes security. So I never considered the notion that XRP may be a security.”
As of now, XRP is trading at $2.26, representing a 12% decline over the past week following a peak price of $2.91 on December 3.
Featured image from DALL-E, chart from TradingView.com