Ripple, a cryptocurrency company, recently announced its plans to introduce a new stablecoin, which will be backed by the US dollar. However, the US Securities and Exchange Commission (SEC) has already taken notice of this project, labeling the stablecoin as an "unregistered crypto asset".

Ripple aims to bridge the gap between traditional finance and cryptocurrency through this project. In April, Ripple announced its intention to launch a dollar-backed cryptocurrency on the XRP Ledger and Ethereum, which is expected to facilitate transactions between traditional finance and crypto at an institutional level . The project's name is set to be announced in June, according to Ripple CTO David Schwartz.

However, the SEC has expressed concerns over Ripple's business model, arguing that it is primarily based on selling XRP to On-Demand Liquidity (ODL) customers. The SEC has also emphasized the need for a deterrent penalty, while Ripple has proposed a $10 million fine . The discussions around penalties are ongoing, and the outcome remains uncertain. Amidst these developments, XRP investors have been significantly impacted, with the XRP price trading at $0.51 at the time of writing .