Ripple’s stablecoin project is already attacked by the SEC

The US Securities and Exchange Commission already has Ripple’s recently announced stablecoin in its sights.

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

As reported by U.Today, Ripple announced its dollar-backed cryptocurrency in early April. The “enterprise-grade” stablecoin, which will launch on both the XRP Ledger and Ethereum, is supposed to unite traditional finance with cryptocurrencies.

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

The lawsuit is “closer than ever” to its end

In its response, the SEC states that a permanent injunction should be granted because Ripple’s business is almost entirely based on the sale of XRP to On-Demand Liquidy (ODL) customers.

Last year, US District Court Judge Analisa Torres ruled that Ripple violated security laws with direct sales of the XRP token to institutional investors.

The SEC has accused Ripple of attempting to re-litigate the summary judgment arguments. “Ripple can appeal, but his persistent refusal to accept the

“The holding of the order for remedial purposes shows that an injunction is essential to prevent another violation,” the agency said.

In its response, the SEC also highlighted that Ripple must pay a large fine that “punishes and deters.” As Guru-Investingreported, Ripple insisted on a fine of only $10 million, but this paltry sum would not significantly punish its violations. Additionally, the record says courts regularly impose punishments equal to the defendant’s ill-gotten gains.

While reacting to the SEC’s response, Stuart Alderoty, Ripple’s lead lawyer, commented that Ripple was “closer than ever” to putting the lawsuit behind it.

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