The CTO Ripple David Schwartz recently addressed an important question about the Stablecoin Rlusd of Ripple. His answer specified why the RUSD can be frozen or rejected, a subject that emerged following the discussion of the legal expert Jeremy Hogan on a bill on stables.
The key characteristic of Stablecoin Rlusd
Jeremy Hogan, a well -known and passionate lawyer for XRP, shared his reflections on a new Stable bill. He wondered if stablecoins like Rlusd or USDC could be frozen after being transferred. Thus, an X user then brought this question to Schwartz, seeking his explanation.
David Schwartz confirmed This rusd can indeed be frozen or scribbled behind. He explained that this feature is essential to maintain specific sales on the big book.
According to him, the legal obligations of the issuer must always be reflected properly, and the outside events, such as judicial orders, may modify these obligations.
How does this feature work?
An XRPL validator named Vet joined the discussion, explaining also that Ethereum and the XRP Ledger allow Rlusd Be frosted or scratched if the police or a court order requires it.
The Clawback function allows Ripple, as a issuer, to take up the tokens under certain conditions. This is useful in case of fraud, criminal activities or when tokens are wrongly sent to the wrong address.
Meanwhile, this is aligned with the Schwartz declaration, showing that this functionality is built to ensure legal compliance while maintaining transparency and security.
Clawback function already approved on XRPL
In January, the large XRP book approved a Clawback amendment, which allows transmitters to recover tokens under certain conditions. This amendment also guarantees that frozen tokens cannot be deposited in Automated market manufacturers (Amms).
With this amendment in place, Rlusd can now be negotiated directly on the decentralized XRP Ledger (DEX), offering more flexibility while maintaining legal compliance.