The Southern District Court of New York scheduled the Pretrial hearing of Ripple to February 22, 2021, at 10 in the morning.
In a letter filed to the court yesterday, Judge Analisa Torres scheduled an “initial pretrial conference” between the US SEC and Ripple Labs. The company connected with XRP that the SEC sued over securities violations. Judge Torres ordered that “counsel for all parties” dial into the conference.
Last week, the SEC alleged that Ripple, together with its founders, has raised $1.3B in ongoing unregistered securities sales beginning in 2013. The defendants deny the allegations, debating that XRP doesn’t constitute a security.
To settle the matter, the SEC has taken Ripple to court. The case rests on whether the SEC can prove that Ripple marketed XRP as an investment and plays a significant role in its success.
The New York Judge also led all the parties to submit a joint letter one week before the conference. The letter shall describe the case, its allegations and defenses, any contemplated motions, and the settlement prospect.
The case’s implications are numerous. Cryptocurrency exchanges won’t list XRP if it is secure, and now, many crypto firms are suspending trading of the coin for the following month.
Because of these, the price of the coin has crashed, which has fallen by around two-thirds in the previous week, from $0.6 to $0.2.
No Comment