Since the end of 2020, Ripple has been involved in a lawsuit with the SEC after they accused the company of offering XRP as an unregistered security.

In its initial ruling, the court said the XRP token was not a security but that the offering to institutional investors violated federal law.

After Ripple said it would be willing to pay a penalty of up to $10 million, the SEC dropped its claim from $2 billion to just under $103 million, saying it was necessary to “deter future misconduct in the crypto industry.”

The court has yet to make a final decision on what penalty, if any, should be imposed.

Source: Crypto Valley Journal