Ripple Labs, the company behind the digital asset XRP, has been engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC) since December 2020. The SEC sued Ripple, alleging that XRP was an unregistered security. In July 2023, a judge ruled that XRP itself is not a security, but that Ripple's institutional sales of XRP constituted securities transactions. Ripple was ordered to pay a $125 million civil penalty for the violations. Both Ripple and the SEC have filed appeals, and the case is now in the Second Circuit Court of Appeals. Ripple is hopeful that the case will be dropped under the new leadership of the SEC. Meanwhile, the SEC has launched a new crypto task force to develop a regulatory framework for digital assets. There are expectations that the SEC may freeze or drop non-fraud cases and establish clearer guidelines for determining whether a token qualifies as a security. Former CFTC Chairman Chris Giancarlo has predicted that the SEC may drop its case against Ripple. XRP experienced significant price volatility in the past, reaching an all-time high of $3.84 in January 2018 and dropping to $0.20 after the SEC's complaint. As of November 2024, XRP was trading at $1.94 per token. With the new SEC commissioner, optimism is growing in the crypto sector, and some anticipate a more favorable stance toward digital assets. There is potential for XRP to retest its 2018 peak and potentially reach the $13.93 level in the longer term.



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