This transcript was prepared by a transcription service. This version may not be in its final form and may be updated.
Vicky Huang: The lawsuit revolved around whether XRP should be classified as a security and registered with the regulator before being issued to the public. Brad Garlinghouse: The three of us decided if we needed to get $10,000 or ₤10,000 to London today, the fastest way for us to do that is to go buy a ticket, EWR or JFK and fly it there. And that's just a fact. Obviously that seems crazy in a world of the Internet. I can...
Kate Linebaugh: Ripple also made its XRP token available to buy and sell outside its main business. The company did this in two different ways. Ripple went directly to institutional investors like hedge funds and venture capital funds, and offered them XRP as an investment that could make money. Ripple also offered XRP up for sale on major crypto exchanges like Coinbase and Binance, meaning any retail investor or regular person could buy or sell it on those exchanges.
Kate Linebaugh: The SEC said that Ripple, the company, issued XRP tokens, sold them to investors, and told the investors that Ripple would work to enhance the tokens' value. According to the SEC, that means XRP tokens functioned essentially like a stock, and as such, qualified as a security. Ripple's CEO rejected that framing. Here he is in an interview with CNBC.
Kate Linebaugh: The Ripple lawsuit was the first time the SEC came down on a high-profile crypto company, and it wouldn't be the last. Speaker 6: The US Securities and Exchange Commission filed more than a dozen charges against the world's largest crypto exchange, Binance, and its CEO on Monday.