What Was the SEC v. Ripple Lawsuit?
SEC v. Ripple was a court case in the United States Southern District Court of New York. In 2020, the U.S. Securities and Exchange Commission (SEC) alleged that Ripple, the blockchain developer and creator of the XRP cryptocurrency token, raised more than $1.3 billion in 2013 by selling XRP in an unregistered security offering to investors. Ripple, relying on the previous comments of an SEC director to support its case, argued that XRP should not be treated as a security.
On July 13, 2023, the court found that XRP (and thus cryptocurrency) was not a security when sold to the public on an exchange, but it is when sold to institutional investors.
Key Takeaways
- Ripple Labs is a blockchain developer and the creator of the XRP token.
- The SEC accused Ripple of selling XRP in an unregistered security offering.
- The outcome of the U.S. regulator’s court case against Ripple might still have…
