The U.S. Securities and Trade Fee has billed Ripple Labs with illegally increasing more than $1.3 billion by means of gross sales of its XRP tokens in a situation that could have important implications for the booming cryptocurrency field.

Since 2013, Ripple has offered more than 1.46 billion XRP models to traders without registering the offerings with the SEC. In a civil criticism submitted on Tuesday, the commission mentioned the tokens are financial investment contracts, building them issue to the registration demands for securities.

XRP, which has a industry cap of $23 billion, is the 3rd most worthwhile cryptocurrency just after bitcoin and Ethereum. Ripple makes use of it with more than 200 fiscal institutions, fintechs, and others to move payments all over the earth.

Ripple’s failure to sign-up the gross sales “deprived prospective purchasers of enough disclosures about XRP and Ripple’s company and other vital prolonged-standing protections that are elementary to our robust general public industry technique,” Stephanie Avakian, director of the SEC’s enforcement division, mentioned in a news launch.

But Ripple maintains XRP is a forex not a safety and CEO Brad Garlinghouse mentioned the corporation would challenge the fit in the courts “to get crystal clear rules of the street for the entire field in the U.S.”

The fit is “an assault on the entire crypto field and American innovation,” he instructed Fortune.

The SEC began stepping up its scrutiny of digital belongings just after locating in 2017 that some tokens may possibly be regarded securities. It not too long ago won a $five million settlement towards messaging application Kik more than unregistered gross sales of digital “Kin” tokens.

Garlinghouse has mentioned that defining XRP as a safety managed by Ripple is akin to viewing oil as a safety managed by Exxon. But in its criticism, the SEC mentioned Ripple “understood and acknowledged in non-general public communications that the principal cause for anyone to purchase XRP was to speculate on it as an financial investment.”

As a substitute of furnishing traders with product data, the fit mentioned, Ripple, Garlinghouse, and former CEO Chris Larsen produced “an data vacuum” and utilized the “information asymmetry they produced in the industry for their possess get, building significant risk to traders.”

Brad Garlinghouse, digital belongings, Ripple Labs, SEC, U.S. Securities and Trade Fee, unregistered offerings, XRP