The Securities and Exchange Commission (SEC) has recently increased its oversight of the cryptocurrency industry. This has led some of the biggest companies in the space, such as Coinbase, to call for a clear regulatory framework.
In December 2020, the U.S. Securities and Exchange Commission (SEC) sued Ripple Labs, Inc., the company that created the cryptocurrency XRP. The SEC alleged that Ripple and its co-founders, Chris Larsen and Brad Garlinghouse, had raised $1.3 billion by selling XRP tokens to investors in an unregistered securities offering.
The lawsuit between Ripple and the SEC has caused major uncertainty and unfavorable sentiment surrounding the cryptocurrency XRP. As a result, a number of cryptocurrency exchanges have delisted or temporarily suspended trading of XRP. If Ripple is victorious in the lawsuit, it would be a major blow to the SEC and a major win for the entire cryptocurrency industry.