Ripple’s Plan to Buy Circle Could Wipe Out Crypto Competition, Expert Warns

Ripple’s reported move to acquire Circle, the issuer behind the USDC stablecoin, has stirred major concerns over market fairness and control. Legal expert Gabriel Shapiro has warned that the deal could wipe out healthy competition across the crypto ecosystem if approved.

According to Shapiro, handing control of Circle to Ripple would result in one firm having excessive power. He said this would help Ripple become the leader in issuing assets on different blockchains, making it harder for competition.

Shapiro cited past instances of Ripple confronting rival networks to indicate how aggressive it can be in the market. In 2033, Chris Larsen from Ripple joined forces with Greenpeace to launch an effort to talk about Bitcoin’s energy use. Critics saw the move as an attempt to damage Bitcoin’s image for strategic gain.

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Shapiro also pointed out the legal aspects related to the Revlon doctrine, which requires companies like Circle to act for the benefit of their shareholders during a potential sale. He said Circle’s leaders should assess the serious antitrust risks before agreeing with Ripple.

Regulatory Scrutiny Looms as Ripple’s Bid Raises Red Flags

Reports suggest Ripple has already made a $5 billion offer for Circle, which was initially rejected as too low. However, because Ripple holds so much XRP, it is financially prepared to keep making bids. Coinbase is interested in buying Circle and looks to have a lead in the current talks.

Shapiro warned that, by signing a deal, regulators such as the Department of Justice and Federal Trade Commission could easily get involved. He revealed that Ripple would be charged for making public campaigns and applying pressure to Ethereum and Bitcoin to bring them down.

Ripple’s attempt to acquire Circle has spurred passionate debate and raised concerns among officials from various legal sectors. Regulators and stakeholders in the digital currency world are closely monitoring how these discussions will affect fair competition and the market.

Also Read: Ethereum Whales Add 1.4M ETH Ahead of Price Surge, Sparking Bullish Frenzy

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