December 2020: The SEC initially filed a lawsuit against Ripple Labs. The SEC alleged that the company had conducted an unregistered securities offering by selling XRP. Since 2020, Ripple has been embroiled in a problem with the SEC due to the sale of XRP as an allegedly unregistered security.
July 13, 2023 After a long legal battle, the court sided with Ripple in a historic ruling and determined that XRP is not a security when sold in public markets. This decision represented a significant victory for Ripple and set a crucial precedent for the classification of cryptocurrencies.
After the July 2023 ruling: The decision had a positive impact on the market value of XRP, with the price of XRP rising nearly 6% following the July 13, 2023 decision.
Last year (after July 2023): The case has continued to develop. Ripple and the SEC have engaged in new legal battles and negotiations. The SEC has not completely backed down, and the regulatory environment remains complex. Ripple has taken this period to strengthen its legal arguments and its position in the market. The discussion surrounding the Howey test, which determines whether a transaction qualifies as an "investment contract," has been a significant aspect. While the SEC argued that XRP met the conditions of the Howey test, Ripple argued the opposite.
Most recent events: The "sudden withdrawal of the SEC from its case against Ripple" regarding the classification of XRP when sold in public markets has been described as something that "has turned the situation around," making it clear that XRP is not classified as a security in those cases.
In summary, the lawsuit began in December 2020, culminating in a key ruling on July 13, 2023, declaring that XRP is not a security when sold in public markets, although the case has continued with subsequent developments and negotiations.