Did the SEC Clear the Path for Ripple? RLUSD on a Fast Track to Conquer Wall Street

▲ U.S. Securities and Exchange Commission (SEC), RLUSD/ChatGPT-generated image

Ripple’s stablecoin RLUSD has secured strong momentum to enter the institutional financial market, supported by the U.S. Securities and Exchange Commission’s (SEC) unprecedented regulatory easing measures.

According to crypto media outlet CoinGape on February 20 (local time), the SEC is reviewing a regulatory relief measure that would allow broker-dealers to treat certain stablecoins as cash equivalents when complying with net capital requirements. The core of the proposal is to significantly reduce the capital burden associated with holding transparent stablecoins that are fully backed 1:1 by cash or U.S. Treasury securities. Institutional investors have traditionally faced strict capital deductions when holding digital assets, limiting their use of stablecoins, but assets such as RLUSD are now increasingly likely to benefit from the change.

To enhance RLUSD’s credibility, Ripple verifies its reserve assets monthly through reputable institutions and has emphasized a transparent operational framework. Issued simultaneously on the XRP Ledger and the Ethereum (ETH) network, RLUSD now has an opportunity to gain a dominant position in institutional payments and settlement services following the SEC’s latest stance. Experts predict that if regulatory barriers are lowered, major Wall Street broker-dealers will actively adopt RLUSD for portfolio management.

The inflow of institutional capital serves not only to foster the growth of an individual coin but also to expand liquidity across the broader Ripple ecosystem. Analysts widely believe that Ripple’s long-established payment infrastructure technology, combined with a more accommodating regulatory environment, has effectively ushered in a phase of practical commercialization. The SEC’s move to recognize stablecoins as cash-equivalent assets signals a significant shift toward integrating digital assets into the core framework of the traditional financial system.

The global stablecoin market is currently valued at approximately $170 billion, and its size is expected to grow exponentially as institutional participation accelerates. Since Ripple issued RLUSD with regulatory compliance as a top priority, it is more likely to be chosen by institutional financial firms over competing assets. Institutional investors will be able to utilize RLUSD for real-time payments and settlements without navigating complex capital calculation procedures, thereby maximizing operational efficiency.

The crypto industry anticipates that this regulatory easing could help resolve the long-standing conflict between Ripple and the SEC and signal the beginning of a new era of cooperation. Ripple’s strategy to establish itself as a core infrastructure provider within the institutional financial system is beginning to bear tangible results through RLUSD. Going forward, the extent of actual RLUSD adoption by broker-dealers and the resulting changes in XRP market liquidity are expected to become key variables shaping the future direction of the digital asset market.

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