XRP: What is this coin?
XRP was created by Ripple to enable fast and cheap international transfers. Thanks to its technology, XRP has become popular among financial institutions, but a lawsuit with the US Securities and Exchange Commission (SEC) has created significant challenges for the project.
The SEC’s lawsuit against Ripple in December 2020 was a turning point for XRP. The regulator accused Ripple of selling unregistered securities under the guise of XRP. This created legal uncertainty, which led many major exchanges, including Coinbase, to suspend trading in the token.
The main point of the claim was that XRP is not a cryptocurrency, but a security that requires registration under US law. Ripple, in turn, argued that XRP is used as a means of making transactions, not for investment.
A partial court ruling in July 2023 was a victory for Ripple. The court ruled that XRP is not a security when sold on the secondary market (i.e., on exchanges). This decision caused a positive reaction in the market, and the value of XRP increased significantly.
