In December 2020, the United States Securities and Exchange Commission (SEC) accused Ripple and two of the company’s executives of making a $1.3 billion unregistered securities offering by selling a known cryptocurrency. under the name of XRP.
After a legal battle that lasted more than two years, it looks like a trial in the case could come at any time. Essentially, this case will decide whether the SEC will recognize XRP as a security, also known as a tradable financial instrument, or something else entirely.
If the case goes in the direction of the SEC, many cryptocurrencies could be placed under its jurisdiction, which means that there could be legal consequences for tokens that have been traded without the approval of the SEC. DRY. It will also mean that tokens will need to be registered, which could be expensive.
This would be very bad news for crypto, according to defense attorney John Deaton, who represents Ripple.
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Thanks, Wired.
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