SEC Requested Ripple to Confirm XRP’s Security Status
In 2020, Ripple’s Chief Legal Officer Stuart Alderoty stated that the US Securities and Exchange Commission (SEC) formally asked Ripple to confirm whether XRP should be classified as a security. The SEC provided Ripple with a short period to comply with their request.
Ripple’s Disclosure of SEC’s Settlement Offer
Stuart Alderoty shared the details of the SEC’s settlement offer to Ripple on social media before the agency filed a lawsuit against the company in December 2020.
Ripple Urged to Acknowledge XRP as a Security
Alderoty revealed that the SEC proposed a settlement in which Ripple publicly acknowledges that XRP is a security. The agency intended to grant a brief window for the market to comply with regulations.
Ripple’s Opposition to SEC’s Suggestion
Ripple declined the SEC’s settlement offer as the company firmly believed that XRP is not a security. The company further criticized the SEC for lacking a proper framework for cryptocurrency compliance.
SEC Drops Charges Against Garlinghouse and Larson
A judge ruled in favor of Ripple by stating that the sale of XRP on public exchanges did not constitute an unregistered securities offering. As a result, the SEC dropped the charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larson.
Hot Take: Ripple’s Battle Against the SEC
Ripple continues to face regulatory challenges regarding the classification of XRP as a security. The company’s refusal to acknowledge it as a security and its legal battles with the SEC have drawn significant attention. The outcome of this case may have far-reaching implications for the crypto industry as a whole.
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