SEC Formally Sues Cryptocurrency Company Ripple

U.S. securities regulators on Tuesday sued cryptocurrency giant Ripple, and both its CEO and executive chairman, for allegedly selling over $1.3 billion in unregistered securities. Axios reports: Ripple on Monday had publicly disclosed that the lawsuit was to be filed imminently, and said it does not believe its tokens needed to be registered. XRP, the cryptocurrency created by Ripple in 2012, has the crypto industry's third-largest market cap at around $22 billion, behind only Bitcoin and Ether. In a separate article, Axios' Dan Primack writes that this lawsuit "could put a chill on some crypto industry investment, as Ripple has no interest in settling fast and moving on." He adds: "It also could mildly complicate the upcoming IPO for Coinbase, where XRP-to-dollar activity made up 15% of trading volume over the past 30 days (per Nomics)."

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