$XRP

SEC (U.S. Securities and Exchange Commission) has filed a lawsuit against Ripple Labs, demanding the recovery of $50 million in a case concerning the unregistered sale of securities in the form of XRP tokens.

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Why this matters:

1. The legal battle between Ripple and the SEC has been ongoing since 2020. Previously, the court partially sided with Ripple, allowing retail trading of XRP.

2. Now the SEC is demanding a specific amount ($50 million), likely for institutional sales.

3. This is not a criminal case, but a civil lawsuit — Ripple is not at risk of shutting down, but the consequences could be financially painful.

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How this affects the market:

• XRP immediately dropped as investors fear long-term pressure from the SEC.

• Other altcoins also saw a slight decline, especially those at risk of being classified as securities (e.g., ADA, SOL).

• Psychologically, the market has begun to factor in legal risks for cryptocurrencies in the U.S. once again.

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Possible consequences:

• Ripple will likely pay a fine but will not cease operations.

• This could set a precedent: the SEC wants to show that they can “push down” even a strong player.

• If Ripple ultimately loses — it will increase pressure on the entire altcoin sector, especially in the U.S.