XRP has outperformed the broader crypto market, rising approximately 15% in the last 24 hours, contrasting Bitcoin and Ethereum’s respective losses of 1.4% and 3.8%.
The digital asset briefly crossed the $0.80 mark, spurred by a combination of regulatory developments and strategic initiatives from Ripple.
Notably, two developments that have coincided with XRP’s surge are speculation around the potential resignation of U.S. SEC Chair Gary Gensler and Ripple’s readiness to launch its anticipated stablecoin, RLUSD.
SEC Chair Signals Possible Exit
In a recent address, Gensler reflected on his tenure, emphasizing the SEC’s commitment to maintaining the integrity of U.S. financial markets. He cited regulatory advancements under his leadership, including reforms to the Treasury and equity markets.
Gensler highlighted the agency’s ongoing enforcement efforts in the crypto sector, revealing that crypto-related cases have accounted for approximately 5% to 7% of total enforcement actions since 2018. Gensler underscored the SEC’s position on Bitcoin, affirming it is not classified as a security, a stance previously shared by former SEC Chair Jay Clayton.
Meanwhile, he emphasized the regulatory scrutiny on other digital assets, reiterating the need for clear distinctions within the market.
In his closing remarks, Gensler suggested a potential departure. He acknowledged the contributions of SEC staff and expressed gratitude for his time in public service. Since his appointment in 2021, Gensler has overseen initiatives to modernize regulations, focusing on the rapidly evolving crypto sector.
Ripple Ready for RLUSD Launch
Meanwhile, Ripple’s plans to introduce RLUSD, a stablecoin pegged to the U.S. dollar, have also contributed to XRP’s recent momentum. The company has processed over $70 billion in payments through its blockchain technology, and RLUSD aims to enhance its offerings with a focus on speed, security, and cost efficiency.
With #RLUSD operationally ready, Ripple President @MonicaLongSF recently joined @TheBlock__’s @fintechfrank to share the story behind Ripple USD and what it means for the future of digital payments: transparency, speed, and stability once launched. https://t.co/i0xgaersdo
— Ripple (@Ripple) November 14, 2024
Ripple’s President, Monica Long, highlighted that RLUSD would cater to growing demand in regions such as APAC, the EU, and Australia. Notably, the stablecoin will be issued on the XRP Ledger and Ethereum blockchain, providing developers with expanded use cases, particularly in decentralized finance (DeFi).
Transparency Drive RLUSD Readiness
Further, Ripple intends to launch RLUSD under a New York Trust license following its acquisition of Standard Custody, which provides a stronger regulatory framework than a money transfer license (MTL).
New York Department of Financial Services (NYDFS) guidelines mandate that stablecoin issuers, including Ripple, hold reserves equal to at least 100% of the value of outstanding stablecoins backed by low-risk, highly liquid assets. This requirement ensures RLUSD’s reserves are managed with rigorous oversight and transparency.
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