- Ripple is currently offering up to $11 billion to acquire Circle, gaining an edge over rival bidder Coinbase in an ongoing acquisition race.
- Legal and regulatory experts believe the acquisition could face antitrust challenges due to Ripple’s potential dominance over blockchain assets.
- Industry figures have warned that Ripple’s history of competitive tactics raises concerns about fair play and decentralization in the market.
Ripple is currently leading in a competitive bid to acquire Circle, with offers reportedly ranging between $9 billion and $11 billion. According to sources close to the matter and reports shared by Paul Barron on X, the San Francisco-based blockchain firm has emerged as the frontrunner ahead of Coinbase.
The potential acquisition has sparked debate across the crypto industry. Gabriel Shapiro, founder of MetaLeX Labs, raised concerns over the impact such a deal could have. He cautioned that Ripple’s control over Circle could result in widespread disruption. Shapiro warned the deal could lead to what he described as a “crypto apocalypse” due to the market dominance it might create.
Antitrust Worries Surround the Ripple-Circle Deal
Shapiro added that regulatory hurdles are likely if the acquisition proceeds. He suggested that the deal might not pass antitrust scrutiny, as it could give Ripple excessive control over stablecoin issuance and blockchain interoperability. He emphasized that making Ripple the leading issuer across multiple chains would create serious competition risks.
The comments also highlighted Ripple’s past industry behavior. Shapiro noted that Ripple has previously been accused of targeting competitors through misinformation and strategic influence. This history has added to apprehensions that the acquisition could create an imbalance in the decentralized finance ecosystem.
Legal Strategy and Shareholder Value Discussed
To ensure shareholder interests are protected, Shapiro advised that Circle’s leadership consider the Revlon doctrine. This legal principle requires a company’s board to focus solely on maximizing shareholder value when a sale is imminent. He stressed that legal and strategic evaluations should take place to avoid long-term harm to market integrity.
Following on from other industry developments, the SEC has withdrawn its approval for the XRP ETF.\ While this is happening, Bitcoin has achieved a record high, increasing the level of market action. Because the crypto sector is evolving fast, the outcome of the talks between Ripple and Circle could alter how stablecoins are issued and who leads the industry.
