Ripple’s stablecoin project has already been attacked by the SEC

The US Securities and Exchange Commission is already eyeing Ripple’s recently announced stablecoin.

In its most recent filing, the SEC described the stablecoin as an “unregistered crypto asset.”

As reported by U.TodayRipple announced its dollar-backed cryptocurrency in early April. The “enterprise-grade” stablecoin, launching on both the XRP Ledger and Ethereum, aims to bridge traditional finance and crypto.

According to Ripple CTO David Schwartz, the name of the stablecoin project will be revealed in June.

The legal dispute is “closer than ever” to its end

In its response, the SEC claims that an injunction should be issued because Ripple’s business is based almost entirely on selling XRP to On-Demand Liquidy (ODL) customers.

Last year, US District Court Judge Analisa Torres ruled that Ripple violated security laws by selling the XRP token directly to institutional investors.

The SEC has accused Ripple of attempting to undermine summary judgment arguments. “Ripple can appeal, but its continued refusal to accept this

“The determination of the remedial order demonstrates that an injunction is critical to preventing further violation,” the agency said.

In its response, the SEC also emphasized that Ripple must pay a hefty fine that is “punitive and dissuasive.” As U.Today reported, Ripple insisted on a fine of just $10 million, but that small amount would not meaningfully punish its violations. Additionally, the filing states that courts routinely impose sentences commensurate with the defendant’s ill-gotten gains.

Stuart Alderoty, Ripple’s top lawyer, responded to the SEC’s response, noting that Ripple is “closer than ever” to putting the lawsuit behind it.

“More of the same story from the SEC – failing to faithfully apply the law and trying to dupe the judge. The good news is that we are closer than ever to putting this lawsuit behind us, although unfortunately many are warranted to begin the journey.”

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Alex Dovbnya