Robinhood submitted a real-world asset (RWA) regulatory proposal to the SEC on May 20 Eastern Time, revealing the future blueprint of its real-world asset exchange (RRE), aiming to improve the efficiency of the existing financial system and address regulatory fragmentation across states, enabling compliant tokenization of assets.
Table of Contents
TogglePlease confirm RWA as an asset, not a derivative
[The rest of the translation follows the same pattern, maintaining the original structure and translating the text while preserving any HTML tags and specific terminology as specified.]Rumors have emerged that Ripple and Coinbase are competing to bid for Circle, the issuer of USDC, causing concern in the community. If Ripple successfully wins the bid, it would simultaneously control two major stablecoins and potentially bring about a "doomsday" scenario for Ethereum, the DeFi ecosystem, and even the entire crypto realm.
ToggleBackground: Ripple and Coinbase Interested in Acquiring Circle
ABMedia previously reported that Ripple is currently leading the bidding to acquire Circle with a bid of $9-11 billion.
Circle is the issuer of USDC, a stablecoin that plays a crucial role in the DeFi ecosystems of public chains like Ethereum and Solana, with a total market value of $60 billion and a market share of 24.6%. In comparison, Ripple's own stablecoin RLUSD has a market value of only around $300 million, ranking 18th.
In fact, as early as early May, Ripple had negotiated an acquisition with a $5 billion offer, which was rejected by Circle. The significant increase in the bid highlights Ripple's ambition to control the stablecoin market.
Legal Experts Warn: "Crypto Doomsday" May Be Triggered
Regarding the possibility of Ripple successfully acquiring Circle, Gabriel Shapiro, legal advisor at Delphi Labs, issued a serious warning. He believes this is not just an acquisition case, but potentially a "doomsday trigger" that could shake the entire crypto infrastructure.
He points out that if Ripple controls both USDC and RLUSD, it would become the largest stablecoin issuer across public chains, bringing monopoly and anti-competitive risks:
More worryingly, they might use the power from this transaction to maliciously attack every DeFi protocol and other blockchains.
Shapiro stated that Ripple has previously spread FUD against competitors like Ethereum, and if it gains control of USDC circulation, it might force the DeFi ecosystem towards its own L1 XRP Ledger, creating a situation of "taking sides".
Ethereum DeFi Ecosystem Faces Structural Threat
Another major risk of Ripple controlling USDC is the fundamental impact on the Ethereum DeFi ecosystem. Shapiro cites a 2019 report from Dragonfly Research, which points out that Ethereum has become an "unforkable" system due to the interdependent nature of its DeFi applications. However, this tight binding also makes it overly dependent on centralized stablecoins like USDC:
If Ripple further controls USDC's issuance policy, it could cause major protocols like MakerDAO or Aave to lose stable asset support, triggering a liquidity and trust crisis that could undermine Ethereum's decentralized infrastructure status.
An even more serious statement is: "Whoever controls USDC, controls DeFi, and thus controls Ethereum."
Decentralization Spirit Faces Severe Challenge
This potential acquisition has sparked community reflection on crypto principles. Decentralization has always been the core value in the blockchain field, but USDC itself is a centralized asset controlled by a single enterprise. If it falls into the hands of a company like Ripple with even more concentrated power, it would completely deviate from the decentralization spirit.
Shapiro calls on Circle CEO Jeremy Allaire to reconsider:
If the acquisition goes through, we will immediately go to the US Department of Justice and Federal Trade Commission to report Ripple's past attacks on Bitcoin and Ethereum, and explain that Ripple's acquisition of Circle would be a disaster for the entire crypto industry, violating antitrust principles.
Circle at a Strategic Crossroads of "Dilemma"
Currently, Circle seems to be in an awkward situation. As the issuer of USDC, it faces acquisition pressure from Ripple and Coinbase on one side, while also dealing with market challenges brought by traditional financial institutions' potential entry and gradually relaxing regulatory environment:
If it chooses an IPO, it might expose the fragility of its profit structure and dependence on Coinbase; but if it chooses not to go public, it might miss opportunities for further expansion and fundraising.
Now, as a pivotal role at the intersection of crypto and traditional finance, Circle is facing a critical moment of dilemma. At this time, redefining its direction, expanding diverse businesses, and strengthening market leadership have become urgent priorities.
Risk Warning
Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
