Is RLUSD Actually Regulated? What Ripple's Trust Charter Means Versus Tether and USDC

Three stablecoins carry the same dollar promise but answer to three very different legal structures, and the gap between them determines what holders actually own if an issuer collapses.

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RLUSD (CRYPTO:RLUSD), USD Coin (CRYPTO:USDC), and Tether (CRYPTO:USDT) all put the word dollar on the label, and all three answer to different regulators, or to none.

Ripple argues that the gap between them decides what happens to holders if an issuer fails, and Ripple issues RLUSD, so Ripple has an interest in the answer. So does the charter change what a holder owns?

A Dollar Stablecoin Can Be Regulated Three Ways

A money transmitter license is a state-issued permit to move customer funds, with reserve rules that vary by state and no federal prudential supervisor watching the issuer. Non-bank crypto firms in the US commonly operate under a collection of these licenses, state by state. Reserves back the coin under rules that differ between states, and holders would rank behind other creditors if the issuer collapsed.

New York’s Department of Financial Services grants limited-purpose trust charters requiring segregated reserves, a fiduciary duty to holders, and regular attestations. An attestation is a public report by an outside CPA firm confirming reserves match liabilities at a point in time, which differs from a full audit because it doesn’t test the issuer’s controls. If the issuer fails, the segregated reserves are legally separate from the estate, so holders rank ahead of ordinary creditors.