Ripple Labs, the fintech company that offers cross-border money transfer solutions, is facing a lawsuit from the Securities and Exchange Commission (SEC). The SEC alleges that Ripple conducted an unregistered initial public offering (IPO) of its cryptocurrency, XRP, and exchanged billions of XRP for non-cash services. The main point of contention is whether XRP should be considered a security, with the SEC arguing that it meets the criteria of the Howey test, which determines if an investment contract is a security. The SEC’s determination of XRP as a security is a key issue in the lawsuit. Both parties have found common ground in discovery terms.

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