Stripe and Bitstamp: new integration in the EU. The outcome of Ripple and SEC lawsuit.
The world of cryptocurrencies and finance is highly dynamic and even minor changes can affect the future of entire industries. Today, we will discuss how traditional financial institutions and crypto companies are adapting to the new reality. In the meantime, email us if you haven't already connected crypto-processing to your website, as well as other payment methods around the world. We have what to offer you.
The lawsuit against Ripple Labs initiated by the US Securities and Exchange Commission (SEC) in December 2020 has reached a final point. The case consisted of accusing Ripple of illegally offering securities, namely its own XRP token to large investors. The company turn out made more than $1.3 billion by failing to register the token as a security, which violates U.S. federal law. After a long process, Ripple agreed to pay a $125 million fine. Initially SEC demanded $1.9 billion, but the outcome of the case was not as expected. According to their statements, SEC will still appeal the decision in hopes of recovering more funds. In addition to the fine, Ripple has pledged to stop institutional sales of XRP, meaning it will close the way for institutional investors to make large purchases. However, retail sales through exchanges are allowed, leaving the door open for small investors to participate.
Despite the financial fluctuations and reputational difficulties related to this court, Ripple has not stood still and has been busy developing new solutions. Company announced the creation of its own Ripple USD (RLUSD) stablecoin pegged to the U.S. dollar. Like its competitors USDT and USDC, RLUSD will be blockchain-based, offering users a stable digital currency for transactions. One wonders how the SEC will react to this and whether the company's new project will affect the increased regulatory scrutiny.
Meanwhile, other crypto news comes from the Bitstamp exchange. It is focusing on cooperation with traditional financial instruments and has completed integration with Stripe's payment service. This will help to accelerate expansion in the European Union and improve payment experience for crypto exchanges. Stripe offers a customizable On-ramp widget that developers can embed into an exchange product to process cryptocurrency exchange orders and instantly settle transactions. Widget currently supports several cryptocurrencies including bitcoin (BTC), Ethereum (ETH), Solana (SOL), Stellar (XLM), and USD Coin (USDC). This widget will not be available for UK customers, as both companies said in a press release. Nevertheless, the entire EU will be able to use the service, which cannot be overlooked as a positive factor.
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