Ripple’s Potential Circle Acquisition Could Spell Trouble for Crypto, Warns MetaLeX’s Shapiro
Originally published by Coinpedia Fintech News
Another day in crypto, another major shake-up in the making. Ripple and Coinbase are reportedly engaged in a high-stakes bidding war for Circle, the issuer of the second-largest stablecoin, USDC. With a potential acquisition price reaching as high as $11 billion, the deal could fundamentally reshape the stablecoin market—and not everyone is thrilled about it.
If Ripple emerges victorious, it would gain control of a major U.S. dollar-backed digital asset and instantly become a dominant force across the crypto ecosystem. But this concentration of power has sparked concern from industry insiders and legal experts.
Serious Concerns from MetaLeX’s Shapiro
Gabriel Shapiro, founder of MetaLeX Labs, issued a stark warning about the possible acquisition.
“Making Ripple the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive,” Shapiro said, sounding the alarm on potential antitrust violations.
He added that any definitive agreement would likely draw immediate scrutiny from U.S. regulators, including the Department of Justice and the Federal Trade Commission. Citing Ripple’s contentious history—such as its prior attacks on Bitcoin and Ethereum, and co-founder Chris Larsen’s controversial campaign with Greenpeace in 2022—Shapiro argues that the company’s past tactics demonstrate a pattern of undermining competitors.
He also pointed to the legal obligations under the Revlon doctrine, suggesting Circle’s board must carefully consider shareholder interests, including the risks of antitrust entanglement.
The Bidding War: Ripple, XRP, and a Second Shot
Initial reports suggest Ripple previously offered $4–$5 billion for Circle earlier this year, but the bid was rejected. The company is now said to be returning with a more aggressive offer—potentially involving a combination of cash and its sizable XRP holdings.
According to a since-deleted post by Paul Barron, Ripple’s war chest includes about $94 billion in assets, with $40 billion of that in XRP (based on a price of $2.37). However, regulatory restrictions limit how quickly Ripple can liquidate those tokens.
Meanwhile, Coinbase, sitting on approximately $8.5 billion in cash and $2.8 billion in crypto, has yet to make a formal offer—raising eyebrows across the industry. One insider suggested that if Coinbase expressed serious interest, Circle would accept immediately.
Who Will Win Out?
While Ripple’s pursuit appears more aggressive, regulatory scrutiny could work in Coinbase’s favor. There’s also speculation that other players—such as Japan’s SBI Holdings, a major XRP stakeholder—could enter the fray as dark-horse contenders.
If Ripple succeeds, the stablecoin landscape could shift dramatically. But if Shapiro’s concerns prove valid, this deal might trigger a regulatory reckoning that reshapes crypto's future.
Only time will tell whether this acquisition becomes a turning point—for better or worse.
