In December 2020, the SEC filed a lawsuit against Ripple Labs, alleging that the company engaged in an unregistered offering of securities by selling XRP, which the SEC classified as a security. Last July, a US court ruled that Ripple's sale of XRP to institutional investors constituted a securities transaction. However, it also determined that the sale of XRP on public exchanges does not fall under the definition of securities. In October, the SEC appealed the ruling, seeking further clarification on XRP's legal status.
