Charles Hoskinson, co-founder of Cardano (ADA), hinted at a potential partnership with Ripple Labs (XRP) regarding their stablecoin RLUSD. According to him, discussions with Ripple’s leadership have already taken place, but the details have yet to be disclosed.
If the partnership materializes, it could significantly improve the scalability of both companies’ blockchains, which is one of the key challenges for their development.
Market Under Pressure
While the potential partnership remains in discussion, ADA's price continues to experience pressure. Over the past week, the Cardano token has fallen by 19.19% to $0.7555. The overall decline for the month has reached nearly 30%, and the 24-hour trading volume has decreased by 50%.
The market is also being influenced by economic instability and the ongoing trade war. These events have triggered massive liquidations totaling over $2.2 billion. Ethereum alone has incurred losses of $258.8 million.
If Cardano and Ripple form a partnership, it could improve transaction efficiency within their ecosystems. Analysts believe that regulatory changes in the U.S. could also accelerate the adoption of digital assets. Hoskinson himself hinted that February could be an eventful month for Cardano.
Possible Inclusion of XRP in the U.S. Crypto Reserve
Earlier, Mark Yusko, the head of Morgan Creek Capital Management, stated that the Trump administration is considering including XRP in the national cryptocurrency reserve. He noted that this could be part of a strategy to strengthen the U.S.'s position in the digital economy.
In an interview on the Good Morning Crypto podcast, Yusko mentioned that Trump's team is exploring the possibility of adding not only XRP, but also Cardano (ADA) and Hedera (HBAR) to the reserve. According to him, the leaders of these projects have already established contacts with Eric Trump.
Ripple vs. SEC: New Details
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has been ongoing since 2020. The case revolves around the regulator’s allegations that the company sold unregistered securities in the form of XRP tokens. However, Ripple’s Chief Legal Officer, Stuart Alderoty, emphasized that Ripple is not accused of fraud, market manipulation, or harming consumers.
In an interview with CNBC, Alderoty stated that the SEC has not been able to identify specific victims or prove any financial losses. In his view, the lawsuit is solely about Ripple allegedly not registering its activities with the SEC, despite the lack of a clear mechanism for doing so at the time.
Previously, XRP reached a five-year high and approached its all-time high (ATH) following a new appeal from the SEC. However, with the appointment of Paul Atkins as head of the commission, Ripple hopes for a review of the regulatory approach. The company’s legal team is preparing a response document for the Second Circuit Court of Appeals.
Read also: DOGE, XRP, and HBAR: 2024’s Comeback Cryptos with Room to Grow in 2025
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