The news of the SEC filing an action against Ripple Labs Inc took the crypto world by surprise. Being the company behind XRP, the sixth biggest crypto in the world, and a cryptocurrency exchange network that can process transactions globally, Ripple’s legal battle with the SEC has become the most closely watched legal battle in the crypto world. According to the complaint filed by the SEC, Ripple obtained funds by selling XRP to investors in the United States and around the world in an unregistered offering of securities. In other words, since the company is behind the sales of $1.3 billion of XRP to retail investors, the transaction must have been filed with the SEC as a public offering of securities to comply with regulations governing such deals. Ripple, for its part, stated that it had never done an ICO. An ICO (Initial Coin Offering) is the crypto industry’s equivalent of an IPO (Initial Public Offering). The company maintains that XRP should be considered as a virtual currency rather than an investment contract or a way to raise money. Most of the crypto community is overwhelmingly in support of Ripple. Over 65,000 holders of XRP indicated an interest in initiating a class-action lawsuit against the SEC for allegedly influencing the price of XRP with the complaint. What does it mean for XRP? The legal battle has dragged on since 2020. This legal saga has dragged on since 2020. The SEC has already been delaying, so it wil...
