In December 2020, the SEC filed a lawsuit against Ripple Labs, accusing the company of conducting an unregistered securities offering by selling XRP, which the SEC classified as a security. In July last year, a US court ruled that Ripple’s sales of XRP to institutional investors were considered securities transactions. However, it also determined that sales of XRP on public exchanges did not fall within the definition of a security. In October, the SEC appealed this decision, requesting further clarification on the legal status of XRP.
