Moreover, the SEC targeted Ripple plans to launch a stablecoin, calling the Ripple stablecoin a new unregistered crypto asset.
Ripple expects a court ruling in the coming months, leaving XRP in limbo. Investors expect the SEC to appeal the Programmatic Sales of XRP ruling after the verdict.
In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.
Despite the uncertainty shrouding XRP, Ripple continues to expand, unfazed by the SEC and the pending court rulings.
Standard Custody and New Hiring to Lead the Stablecoin Initiative
On Tuesday, Ripple CEO Brad Garlinghouse announced the hiring of Jack McDonald, saying,
“2 major acquisitions in ~1 year under Ripple’s belt with Metaco and Standard Custody, and a big welcome JackMcDonald! Jack is no stranger to the XRPL ecosystem (and to me!) – thrilled to have him join team Ripple, leading our stablecoin initiatives.”
The announcement followed news of Ripple completing the acquisition of Standard Custody. Jack McDonald will remain CEO of Standard Custody while leading the stablecoin team.
In February, Brad Garlinghouse discussed the acquisition of Standard Custody, highlighting the importance of custody for the crypto market, saying,
“We think there are some basic building blocks around crypto that are important to make crypto successful. Custody is an important part of that. For institutions to be able to custody their own as well as their customers’ digital assets, we think it is very important.”
However, XRP had a muted response to the latest Ripple news, with the Fed and the SEC vs. Ripple case being the focal points.