Pro-XRP Lawyer Reacts to US SEC Labeled RLUSD As Unregistered in Ripple Lawsuit

Pro-XRP lawyer Bill Morgan reacts to mounting concerns over the U.S. Securities and Exchange Commission (SEC) or Chairman Gary Gensler spoiling the RLUSD stablecoin launch party. Notably, the US SEC recently labeled the stablecoin as an unregistered crypto asset in the Ripple lawsuit.

XRP Lawyer Addresses US SEC’s ‘Unregistered’ Claim on RLUSD

Pro-XRP lawyer Bill Morgan commented on an X post regarding RLUSD issuance once labeled as an ‘unregistered‘ crypto asset by the US SEC in its remedies-related reply brief. While the Ripple USD stablecoin received greenlight from the New York Department of Financial Services (NYDFS), some crypto investors are skeptical.

The post raised questions about whether the SEC or outgoing Chair Gary Gensler can cause problems for Ripple on RLUSD stablecoin. Interestingly, the SEC has remained silent on the approval from the NFDFS. In the Ripple vs SEC lawsuit, the agency mentioned RLUSD to claim that Ripple sold crypto assets without proper registration. This does not mean immediate actions but regulatory clarity is critical for broader adoption.

Morgan commented — “That is correct.” However, he added that the SEC made many incorrect statements about crypto and the regulator was wrong here too. Notably, this also includes the term ‘crypto asset securities’ for which the SEC expressed regrets to the court.

“Ripple does not care about the statement. If it was meant to be a warning or a threat it has been disregarded or worked around and quite frankly neither the market nor anybody else cares because RLUSD is now regulated,” he added.

Will the Stablecoin Benefit the XRP Price Rally?

Ripple President Monica Long earlier addressed concerns about RLUSD stablecoin impacting XRP. He clarified that the Ripple USD and XRP will serve different purposes within the ecosystem. XRP is used as a bridge asset for cross-border transactions.

Meanwhile, the RLUSD stablecoin is more about impact such as increasing liquidity, boosting utility, and expanding business. Its use cases include cross-border payments, decentralized finance, real world asset (RWA) tokenization, and crypto on-off ramps as it launches on XRP Ledger and Ethereum. It will be initially available in the Americas, Asia-Pacific, UK and Middle East regions via its distribution and exchange partners.

Moreover, the stablecoin launch fueled XRP price to surge 12% today and 22% in a week. The price currently trades at $2.62, with an intraday high of $2.72. It saw trading volumes of almost $19 billion, which is up 172% over the last 24 hours.

In the derivatives market, the total XRP futures open interest shoots to $4.50 billion. It skyrockets 19% in the last 24 hours, with Bybit and Binance leading the trades, as per Coinglass data.