Ripple Shifts to USDT for U.S. Operations Amid Regulatory Pressure
Ripple replaces XRP with USDT in U.S. operations following SEC ruling
Ripple has shifted its U.S. On-Demand Liquidity operations to Tether (USDT) instead of XRP following a court decision related to U.S. securities laws.
This legal adjustment was disclosed in Ripple’s opposition to the SEC's proposed penalties and final judgment.
In response to the court's decision, Monica Long, Ripple’s President, announced the switch to USDT for all U.S.-based ODL services.
Crypto Eri publicized this change on social media. Long stressed the importance of using legally approved stablecoins for future transactions within the U.S.
The company has reoriented its strategy towards its Singapore subsidiaries, which now manage most of the new XRP sales contracts for ODL customers, primarily outside the U.S. This move is part of Ripple's strategy to bypass U.S. regulatory constraints while continuing to support its international operations.
According to calculations by Ripple’s accounting expert, Anthony Bracco, Ripple faced significant financial losses before the SEC lawsuit.
The financial details revealed Ripple’s dependency on XRP sales for revenue, highlighting the economic impact of regulatory challenges on its operations.
This adjustment in Ripple's strategy reflects its efforts to align with U.S. regulations and maintain its international market presence despite the ongoing legal challenges.
