A prominent New York regulator is reportedly considering approving payments platform Ripple Labs’ RLUSD stablecoin next week.
According to a new report from Fox Business, anonymous people familiar with the matter say that the state’s top regulator – the New York Department of Financial Services (NYDFS) – has informed Ripple that it will approve the product, possibly before the launch date in December. 4th.
News of the possible approval sent XRP, the digital asset associated with Ripple, flying from its November 28 low of $1.45 to its current price of $1.88, an increase of almost 30%.
Last month, Ripple announced exchange partnerships for its stablecoin, including popular crypto companies such as Bitstamp and MoonPay.
As Keith Grossman, President of Enterprise at MoonPay, told Fox Business:
“Having another well-capitalized, highly regulated player entering the global stablecoin market – especially as MiCA (crypto asset markets) regulation is about to be implemented in Europe – is a win-win situation and MoonPay is proud to provide access to RLUSD for our partners and customers on day one of Ripple’s launch.”
Ripple Labs was sued by the US Securities and Exchange Commission (SEC) in December 2020 for allegedly selling unregistered securities. However, the judge in the case ruled that retail sales of XRP do not qualify as securities.
Additionally, the regulator filed a lawsuit in May declaring that RLUSD qualifies as an “unregistered crypto asset.”
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Featured image: Shutterstock/Oleksandra Klestova