With the years, Ripple has had a number of problems with the SEC, the US Securities and Exchange Commission, the body responsible for overseeing stock exchanges in the United States.
The oldest problem is the issue of the nature of XRP. In fact, Ripple is actually the company, Ripple Labs Inc., which created the XRP token and the XRP Ledger blockchain.
This blockchain is advertised as a decentralized blockchain, and Ripple denies having control over XRP. But not everyone agrees with this statement, in part due to the fact that most of the created XRP tokens are still under the control of Ripple, although they are entrusted with a trust that administers their release.
The point is that many argue that XRP is, in fact, a security and not a simple decentralized payment token or utility token.
As of today there has been no final verdict on the matter, especially since there is an ongoing lawsuit filed by some applicants against Ripple, so the case is still open.
If XRP were to equate to value, Ripple's responsibilities towards XRP token owners would be much stricter than they are now, and the company would likely have much less leeway in the markets.
Another problem, which is not of direct interest to the SEC, is the fact that Ripple it would not be profitable without the continued sale of XRP on the market, so if the company were restricted in this regard, it could suffer serious harm.
Another problem concerns Ripple's continued sale of XRP tokens in the market, which seems to have a clear impact on the value of the token over time.
To tell the truth, this demand is closely related to the problem of the nature of the XRP token, because if this were considered as security, its sale in the market by the company would be regulated and not free as it is now.
To cut off the bull's head, it has even been hypothesized that Ripple could list on the stock exchange with a IOP normal, fully regulated by the SEC, so that you can use this other system to finance yourself in the market, so it may cease to do so with the sale of XRP.
The hypothesis makes sense, especially since it was, in fact, strongly suggested by the Ripple CEO himself.
However, the funny thing is that the SEC has yet to go public on this topic, despite the fact that last year it published a guide to recognize STO calls, that is, the security token offers.
Sure, Ripple is no longer a token offering as it XRP has been in circulation in the markets since 2013But it does mean that the SEC should probably have a pretty good idea of what a security token is.
Despite this, it seems that he has decided not to comment on it, for reasons unknown to date. Meanwhile, XRP and Ripple continue to function and function as they always have, so much so that the laissez-faire de the SEC appears to be an objective authorization, although not formal, to continue as they have.