The crypto world is buzzing with news of a high-stakes battle, as Ripple and Coinbase are reportedly vying to acquire Circle, the company behind the USDC stablecoin, in a deal that could be worth up to $11 billion. This potential acquisition could reshape the stablecoin market and significantly boost Ripple’s influence in the crypto ecosystem. However, not everyone is thrilled about the prospect, with critics raising serious concerns about the implications.
### Why This Deal Matters
If Ripple secures Circle, it wouldn’t just gain control of a leading dollar-pegged stablecoin but could cement itself as a dominant player across multiple blockchains. This kind of power consolidation is raising eyebrows, with some warning it could disrupt competition in the crypto space.
### A Recipe for Disaster?
Gabriel Shapiro, founder of MetaLeX Labs, didn’t mince words when discussing the potential fallout of Ripple acquiring Circle. He called it “disastrous and anticompetitive,” arguing that handing Ripple control over such a critical asset issuer would give it too much sway in the industry. Shapiro also flagged antitrust risks, predicting that regulators like the Department of Justice (DoJ) and Federal Trade Commission (FTC) would closely scrutinize the deal.
He didn’t stop there. Shapiro pointed to Ripple’s past actions, including its co-founder Chris Larsen’s 2022 collaboration with Greenpeace to criticize Bitcoin mining, as evidence of the company’s willingness to undermine competitors. He also suggested that Circle’s leadership should consider the Revlon doctrine, which emphasizes acting in shareholders’ best interests by carefully evaluating risks like regulatory pushback.
### The Bidding War Heats Up
According to reports, Ripple initially offered $4–5 billion for Circle earlier this year but was rebuffed. Undeterred, Ripple is said to have returned with a heftier proposal, possibly leveraging its substantial $XRP holdings—valued at roughly $40 billion at $XRP ’s current price of $2.37—alongside cash. However, legal restrictions may complicate Ripple’s ability to liquidate those tokens without court approval.
Meanwhile, Coinbase, with $8.5 billion in cash and $2.8 billion in crypto investments, remains a formidable contender. Some speculate that Circle would jump at a Coinbase offer, given its stronger regulatory standing in the U.S. There’s even talk of a wildcard player, like Japan’s SBI Holdings, a major $XRP holder, potentially entering the fray.
### What’s at Stake?
The outcome of this acquisition could redefine the stablecoin landscape. A Ripple victory might amplify its influence but invite intense regulatory scrutiny. If Coinbase or another player prevails, the balance of power could shift differently. As Shapiro warns, this deal could be a pivotal moment for crypto’s future—whether for better or worse remains to be seen.
