This potential Ripple–Circle acquisition is a major flashpoint in the crypto world, and the criticism from Gabriel Shapiro of MetaLeX highlights just how high the stakes are. Here’s a breakdown of why this situation is so pivotal:
Why This Matters
USDC is a Major Stablecoin: Circle’s USDC is the second-largest stablecoin after Tether (USDT). Whoever controls it gains immense influence over DeFi, exchanges, and payment rails.
Ripple’s Power Grab: If Ripple acquires Circle, it wouldn’t just control USDC—it would gain major influence across nearly every blockchain where USDC operates, potentially giving it outsized power.
Concerns Raised
Antitrust Fears: Shapiro’s warning is clear—this deal could give Ripple monopolistic control, especially considering its aggressive past tactics. The antitrust angle isn’t just speculative; regulatory bodies like the DOJ and FTC may take serious interest.
Revlon Doctrine: This legal principle requires Circle’s board to act in shareholders’ best financial interests. Ignoring the regulatory and antitrust risk of a Ripple deal could be seen as a breach of fiduciary duty.
Ripple’s Reputation: Past campaigns against Bitcoin and Ethereum—such as Larsen's Greenpeace climate push—are being used as examples of Ripple flexing power for self-interest.
Current Situation
Ripple has reportedly sweetened its offer after an earlier rejection and may use XRP holdings to fund the deal. But there are legal constraints on selling large amounts of XRP due to ongoing regulatory scrutiny.
Coinbase, despite having substantial cash, hasn’t made a public move—perhaps waiting to see if Ripple stumbles with regulators first.
Other bidders, including Ripple-aligned entities like SBI Holdings, could jump in.
What Could Happen Next
If Ripple wins: Expect heavy regulatory pushback, possible delays, and maybe forced divestitures.
If Coinbase wins: Smoother sailing with regulators, but could still raise concentration concerns.
If a third party wins: Could defuse some tensions but change the stablecoin dynamics less dramatically.