In December 2020, the U.S. Securities and Exchange Commission (SEC) accused Ripple and two of the company’s executives of conducting a $1.3 billion unregistered securities offering by selling a cryptocurrency known as XRP.
After a legal battle of more than two years, it seems that any day now there will be a ruling on the case. Essentially, this case will decide whether the SEC will recognize XRP as a security AKA a negotiable financial instrument, or something entirely different.
If the case goes the way of the SEC, many cryptocurrencies could then be placed under its jurisdiction, meaning there could be legal consequences for tokens traded without SEC approval. This also means that tokens must be registered, which can be cumbersome.
This would be very bad news for crypto, according to attorney John Deaton, who represents Ripple.
What do you think of this?