Symbol: XRP
Ripple is a real-time gross settlement system, currency exchange and remittance network created by Ripple Labs Inc., a US-based technology company. It was founded in 2012 and is based upon a distributed computing protocol that is open source.
This network allows for the transfer of tokens that are related to fiat currency, cryptocurrency, commodities, and units of value. The latter can include things such as mobile phone minutes and store rewards.
The company claims that it offers secure, instantly and nearly free global financial transactions of any size with no chargebacks.
Lawsuit
Ripple is best known in the blockchain world for its targeting by the Securities Exchange Commissions (SEC). In 2018, the company was sued by the agency who claimed it was raised hundreds of millions of dollars in the unregistered sales of the XRP token.
This is a constant within the cryptocurrency realm. The SEC has taken the stance that all coins and tokens are securities with the lone exception being Bitcoin. For that reason, entities that sold these are guild of violating U.S. securities laws.
The U.S. Securities and Exchange Commission (SEC) initiated legal proceedings against Ripple Labs, CEO Brad Garlinghouse, and co-founder Chris Larsen on December 21, 2020, for allegedly selling unregistered securities. In the lawsuit, the SEC claimed that XRP was a security instead of a commodity, because it was generated and distributed by Ripple Labs in a centralized fashion and was not being adopted by financial institutions for its advertised use cases.
Response
Ripple was initially viewed negatively by the cryptocurrency community. The fact that it is centralized and appealed to banks meant that many felt it was against the tenets that were espoused by the Cypherpunks and Satoshi Nakamoto such as decentralization and privacy.
This opinion turned as the company dug in their heels and fought the SEC. Many believe the agency is targeting cryptocurrency without merit, an overstepping of government power.
As of early 2023, the case is still in the courts with no resolution. Unlike many other entities, the defendents in the case did not settle.