By (MR_UMAIR)
Ripple’s Potential Acquisition of Circle Raises Antitrust Alarms, Says MetaLeX’s Shapiro
The crypto world may be on the brink of a seismic shift as Ripple and Coinbase engage in a high-stakes bidding war to acquire Circle, the issuer of the second-largest stablecoin, USDC. With the reported valuation for Circle reaching as high as $11 billion, this potential acquisition has set off alarm bells across the industry. Chief among the concerned voices is Gabriel Shapiro, founder of MetaLeX Labs, who has called the deal potentially “disastrous” for the broader crypto ecosystem.
A Threat to Stablecoin Market Balance?
The implications of Ripple acquiring Circle are profound. Control of USDC—one of the most widely used dollar-backed stablecoins—would grant Ripple enormous influence across blockchain networks. Critics argue that such consolidation poses antitrust risks and could destabilize the competitive balance of the crypto market.
“Making Ripple the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive,” warned Shapiro. He emphasized that the merger, if it advances, is unlikely to pass regulatory muster without intense scrutiny from the U.S. Department of Justice (DoJ) and Federal Trade Commission (FTC).
Shapiro also cited Ripple’s contentious history in the crypto industry, including its public criticisms of both Bitcoin and Ethereum. He referenced the 2022 campaign by Ripple co-founder Chris Larsen in partnership with Greenpeace, which called for Bitcoin to abandon its proof-of-work consensus—a move widely viewed as an attack on competitors. According to Shapiro, such conduct exemplifies the type of anticompetitive behavior that regulators might find troubling.
Inside the Bidding War
Reports indicate that Ripple initially proposed a $4–$5 billion acquisition offer earlier in the year, which Circle declined. Now, Ripple is believed to be back with a significantly higher bid, potentially combining cash with XRP from its extensive reserves. Paul Barron, in a since-deleted post, estimated Ripple’s total holdings at around $94 billion, including approximately $40 billion in XRP based on current valuations.
However, Ripple faces legal constraints in liquidating large portions of its XRP holdings, adding complexity to any financial deal.
Meanwhile, Coinbase, a rival bidder, boasts a strong balance sheet with $8.5 billion in cash and $2.8 billion in crypto assets. Yet the exchange has not made a public move, raising speculation about its strategy or regulatory positioning.
What’s Next for Circle?
While Ripple appears to be pushing aggressively, some industry insiders believe Coinbase remains a more viable suitor, especially in the eyes of regulators. “If Coinbase wanted to buy them, Circle would sell in a heartbeat,” one banker reportedly commented.
There is also potential for a surprise contender. Japan’s SBI Holdings—a major XRP holder—has been floated as a possible player in the deal, either independently or in support of Ripple’s bid.
A Pivotal Moment for Crypto
The outcome of this acquisition battle could have far-reaching consequences for stablecoin dominance and the future of financial decentralization. Shapiro’s warnings highlight the risks of further centralization in the hands of a single crypto entity, especially one with Ripple’s contentious track record.
If the deal proceeds, it may mark a defining moment for the industry—one that could reshape market dynamics, regulatory standards, and the role of stablecoins in global finance. Whether that moment will be one of progress or peril remains to be seen.