![]() The SEC has published some guidance, but the creation and issuance of new tokens has proceeded at a rapid clip, with a small minority registered as securities. Nearly a decade after the creation of Bitcoin, the question of whether a digital token is a security remains a major risk factor for cryptocurrency projects and companies that deal with them. After the regulator filed its lawsuit, exchanges like Coinbase suspended trading of XRP and the token's value plummeted. But the token began trading in 2013, and the founders claim they have no idea why the SEC targeted Ripple instead of the many other digital assets out there. The SEC argues XRP was illegally sold as an unregistered security. The SEC sued Ripple and its leaders Bradley Garlinghouse and Christian Larsen last year over their issuance of over $1 billion worth of XRP, a digital asset whose transactions are recorded on a blockchain. Ripple Labs, whose digital asset XRP is valued at over $20 billion, is demanding in court that the Securities and Exchange Commission turn over internal records explaining its decision to clamp down on the token after years of trading. Ripple now wants internal SEC records to find out what distinguishes one token from another.But Ripple says XRP is more like Bitcoin and Ether, which generally trade freely. ![]() The SEC says Ripple's XRP is an unregistered security, and exchanges like Coinbase won't let users trade it. ![]() Account icon An icon in the shape of a person's head and shoulders. ![]()
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