SEC Lawsuit
In December 2020, the Securities and Exchanges Commission (SEC) filed a lawsuit against Ripple and two of its executives.
According to the SEC press release “The complaint alleges that Ripple raised funds, beginning in 2013, through the sale of digital assets known as XRP in an unregistered securities offering to investors in the U.S. and worldwide.”
Ripple filed a 93-page response to the lawsuit in January 2021, stating that “XRP performs a number of functions that are distinct from the functions of ‘securities’ as the law has understood that term for decades. For example, XRP functions as a medium of exchange — a virtual currency used today in international and domestic transactions — moving value between jurisdictions and facilitating transactions.”
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Disclosure: At the time of writing the author holds ADA, ICX, IOTA and XLM.
