Ripple and Coinbase are now in a big-money race to buy Circle — the company behind the popular USDC stablecoin. The deal could cost as much as $11 billion, and whoever wins could take control of one of the most important pieces of the crypto world.
But not everyone thinks this is a good idea.
Big Warnings from a Legal Expert
Gabriel Shapiro, a lawyer and the founder of MetaLeX Labs, strongly disagrees with Ripple’s attempt to buy Circle. He says if Ripple becomes the top issuer of assets on every blockchain, it would be “disastrous” and unfair. He’s worried this kind of deal could limit competition and hurt the crypto industry.
Shapiro also says regulators like the Department of Justice (DoJ) and Federal Trade Commission (FTC) should get involved. He pointed out Ripple’s past actions, like trying to make Bitcoin look bad by teaming up with Greenpeace in 2022.
He reminded Circle’s leaders that they have a duty to protect their shareholders — and that means thinking carefully about the legal risks.
Ripple’s First Offer Was Rejected
Ripple first tried to buy Circle for around $4 to $5 billion earlier this year, but Circle said no. Now, Ripple might be offering a lot more money, possibly using some of its XRP tokens as part of the deal. But it can’t just sell those tokens freely — it would need court approval.
Ripple’s crypto holdings are worth about $94 billion, including around $40 billion in XRP. However, because of ongoing legal issues, using XRP could be tricky.
What About Coinbase?
Coinbase, Ripple’s main competitor in the deal, has around $8.5 billion in cash and nearly $2.8 billion in crypto. So it can afford to buy Circle too — but so far, it hasn’t made a move. Some think regulators would prefer Coinbase to buy Circle instead of Ripple.
There’s also a chance a surprise company — like Japan’s SBI Holdings — could jump in.
Why This Deal Matters
If Ripple does buy Circle, it could change the stablecoin market overnight. But experts like Shapiro warn it could lead to big problems if one company becomes too powerful. This could be a turning point for the future of crypto — for better or worse.
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