The
lawsuit
could
have
far-reaching
implications,
especially
on
the
SEC’s
pending
appeal
in
the
Ripple
case,
which
is
one
of
the
biggest
factors
impacting
XRP’s
price.
In
December
2020,
the
SEC
filed
a
lawsuit
against
Ripple
Labs,
accusing
the
company
of
conducting
an
unregistered
securities
offering
by
selling
XRP,
which
the
SEC
classified
as
a
security.
In
July
of
last
year,
a
U.S.
court
ruled
that
Ripple’s
XRP
sales
to
institutional
investors
qualified
as
securities
transactions.
However,
it
also
determined
that
sales
of
XRP
on
public
exchanges
did
not
fall
under
the
definition
of
a
security.
In
October,
the
SEC
appealed
against
this
ruling,
seeking
further
clarification
on
the
legal
status
of
XRP.