Ripple’s Potential Acquisition of Circle Sparks Antitrust Fears, ‘Crypto Apocalypse’ Warning

MetaLeX Labs founder and crypto attorney Gabriel Shapiro has warned that Ripple acquiring Circle could trigger a "crypto apocalypse" and likely face regulatory pushback. Shapiro claims the deal could allow Ripple to dominate the crypto ecosystem, raising serious antitrust concerns with U.S. regulators like the DOJ and FTC.

Regulators typically scrutinize such deals for anti-competitive risks, especially when a company could gain disproportionate control over digital asset issuance. “Making Ripple the largest asset issuer on every blockchain would obviously be disastrous and anticompetitive,” Shapiro said. He also pointed to Ripple’s past tactics, such as co-founder Chris Larsen’s 2022 collaboration with Greenpeace to criticize Bitcoin mining, as evidence of Ripple’s willingness to undermine rivals.

Shapiro also invoked the Revlon doctrine, suggesting Circle must prioritize shareholder value and consider regulatory risk in any potential sale. If a deal is signed, Shapiro vows legal challenges at the FTC and DOJ, citing Ripple’s history of waging campaigns against Bitcoin and Ethereum.

Ripple is reportedly in a bidding war with Coinbase for Circle, the issuer of USDC, the second-largest stablecoin. While Ripple's $5 billion offer was previously rejected for being too low, the firm holds a vast XRP treasury, bolstering its position. Coinbase, however, is currently seen as the frontrunner.

The potential acquisition has raised alarm over the centralization of power in the hands of Ripple, especially in the context of the ongoing regulatory scrutiny of the crypto industry. As the stablecoin market becomes more critical to crypto infrastructure, any such deal would undergo intense review from regulators and the broader community.