The SEC (Securities and Exchange Commission) issue with XRP began with a lawsuit in December 2020, when the SEC accused Ripple Labs, the company behind XRP, and two of its executives, of selling unregistered securities.
In short:
1. Core of SEC's Allegations
The SEC considers XRP a security, not a regular cryptocurrency.
According to the SEC, Ripple raised over $1.3 billion through the sale of XRP without registering it as a security.
Ripple is viewed as selling XRP like a company selling shares, not as a utility token.
2. Ripple's Argument
XRP is a digital currency like Bitcoin or Ethereum, not a security.
The XRP Ledger blockchain is decentralized and not entirely controlled by Ripple.
XRP is used for cross-border payments and liquidity, not for providing ownership in the company.
3. Recent Developments
In July 2023, the judge ruled that the sale of XRP on the secondary market (exchanges) is not a sale of securities.
However, direct sales to institutions were deemed a violation of securities law.
This means: Ripple won partially, and the SEC also won partially.
Further hearings are still discussing sanctions or settlements.
4. Impact on XRP
When the lawsuit was announced (2020), many U.S. exchanges (including Coinbase) delisted XRP.
After the ruling in July 2023, some exchanges began to relist.
This case has become one of the most important in crypto history because it could determine how crypto asset regulation will be in the U.S. in the future.
If you want, I can create a complete timeline from the beginning of the SEC vs. XRP case to now to clarify its flow.
