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Ripple Faces Risk Of Another SEC Lawsuit

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XRP News: Ripple’s launch of the RLUSD stablecoin website has ignited speculation within the XRP community about the potential conclusion of the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC). Some see this move as a sign that Ripple is nearing the end of its legal battles with the SEC. However, prominent voices in the crypto space suggest caution, indicating that a new lawsuit might be on the horizon.

Ripple To Face Another SEC Lawsuit?

When a crypto influencer questioned the impact of the RLUSD in the ongoing Ripple SEC lawsuit, lawyer Fred Rispoli offered his take. Rispoli, a staunch XRP supporter, recently commented on the potential implications of the RLUSD website going live. He stated, “Any issues the SEC has with $RLUSD is for another lawsuit and cannot be bootstrapped to one that is about to end!”

This remark underscores the possibility that even if the current lawsuit concludes, Ripple could face fresh scrutiny over its new stablecoin venture. Earlier, the blockchain firm’s President Monica Long had previously indicated a 2024 launch date for RLUSD. Moreover, the creation of a dedicated website suggests that the company is in the final stages of preparation.

Although the exact launch date remains undisclosed, industry watchers are closely monitoring the RLUSD stablecoin progress. The anticipation is understandable as many XRP enthusiasts many hoping that the launch of RLUSD signifies a nearing resolution of the Ripple SEC lawsuit.

However, the blockchain firm might be able to avert the risk of another lawsuit if a pro-crypto administration takes over after the November elections. Presidential candidate Donald Trump has affirmed his pro-crypto stance multiple times. Furthermore, former SEC attorney Marc Fagel believe that the agency’s approach toward the crypto industry might change in case a pro-crypto candidate wins.

Also Read: Ethereum ETF Outflows Hit $170M In A Week, What’s Next For ETH?

Remedies Ruling Timeline

Former Ripple director Sean McBride recently fueled further speculation by posting on X about the odds of Judge Torres ruling in August. His post has garnered significant attention from both the XRP community and the broader crypto space. McBride suggested a “50/50” chance of Judge Torres issuing a decision in August.

Commenting on the post, one user noted that Ripple CEO Brad Garlinghouse had previously predicted a XRP lawsuit resolution by the end of summer. Thereafter, McBride responded that if there is a delay in the ruling, it is highly likely that Judge Torres will give her decision by the end of September.

However, speculations about a possible settlement between Ripple and the SEC have been debunked by legal experts. Pro-XRP lawyer Bill Morgan and former SEC attorney Marc Fagel have downplayed the likelihood of a settlement.

Morgan recently described a potential settlement as “unlikely.” He also suggested that if a settlement does occur, it would be a compromise rather than a significant victory. In addition, he pointed out that Ripple might still face significant challenges related to XRP sales beyond December 2020 and future sales of the token.

XRP News: 1 Billion Token Unlock

The ongoing XRP lawsuit has drawn varied opinions from legal experts and the token’s supporters. Ripple executives, including Brad Garlinghouse, have made comments that fuel speculation about a potential conclusion.

Additionally, Ripple’s Q2 2024 XRP market report expressed confidence in a “fair” ruling. It stated that they believe the central ruling that XRP is not a security will remain unchanged, regardless of the outcome.

The SEC has sought a substantial $1 billion (excluding interest) penalty from the crypto firm for alleged violations. Conversely, Ripple has indicated it is willing to settle for no more than $10 million. This significant gap suggests that reaching a settlement might be challenging.

However, according to the latest XRP news, 1 billion XRP worth approximately $579.43 million was unlocked. This led to an 8% slump in XRP price, breaching the $0.6 psychological support level. This move has further ignited speculations of a Ripple SEC lawsuit settlement. Netizens view this initiative as a means to pay off penalties and reach a resolution.

Also Read: Jump Trading Dumping Ethereum, Which Crypto Is Next?

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Kritika Mehta

Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

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Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.

US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges

The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.

Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.

Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

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Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.

Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin

In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.

Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.

Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.

“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.

In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.

Industry Players Are Bracing For New Stablecoin Regulations

Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.

For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.

Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.

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Aliyu Pokima

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FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

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The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.

New FDIC Guidelines on Crypto-Related Activities

The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.

Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.

This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.

“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





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