At the end of 2020, one of the leaders in the capitalization rating — the XRP cryptocurrency of the popular Californian startup Ripple — became the focus of the crypto community. The reason was the litigation of the project with the American Securities and Exchange Commission (SEC).
The regulator accused the startup of illegally selling securities in the form of XRP tokens. Ripple representatives disagreed with the organizational and legal status that the Commission assigned to the cryptocurrency. According to the developers, XRP is a digital currency. Accordingly, the claims of the SEC, according to Ripple, are unfounded.
The start-up’s victory over the SEC could have a positive effect on the XRP rate, which dropped noticeably during the proceedings. The potential opportunity to make money on the purchase of Ripple tokens has become the reason why many investors began to closely monitor the conflict of the parties.