Ripple And The United States SEC Set To Meet In Court For The First Time
What started as a rumor around some weeks ago has fully blown out of proportion with the next steps that will be taken already confirmed. When Brad Garlinghouse, the CEO of Ripple, came out to blast rumors that the payments outfit would be slammed with a lawsuit, many in the crypto world wished it was mere rumors.
As the clock ran down, the crypto community was anxiously waiting if this rumor was going to be true or if it was just one of those rumors that made their way around the crypto market. Confirming Garlinghouse’s suspicion, the Securities and Exchange Commission officially announced Ripple’s sanction for selling unregistered and unlicensed securities to investors.
First pretrial conference date scheduled to hold on February 22, 2021
Since then, tongues have started wagging, with renowned investors, experts, and enthusiasts dropping their hot takes regarding the topic. Even though most of them have criticized the decision of the XRP, branding XRP as unregistered securities, there is little or nothing that they can do to change the way the regulatory body views the digital asset.
With all that already out in the way, a New York court has been earmarked as the first place that the battle between the remittance payment outfit and the United States regulatory body would first slug it out. In a recent statement, it was gathered that both parties had been asked to converge for the hearing with Judge Analisa Torres presiding over the pretrial conference on February 22.
This statement also said that the pretrial conference would not necessarily hold inside the court premises as it would hold remotely. A pretrial conference is an activity that takes place in a law court, which allows the judges involved to build a schedule regarding the case at hand. The pretrial conference is the event that would determine when the pretrial will happen before which the trial will take place.
The SEC and Ripple continue their online battles
The United States Securities and Exchange Commission has alleged that Ripple breached its rule of conduct after selling unlicensed and unregistered securities to investors since 2023, raking in billions in finds since then.
The SEC did not stop at that but targeted and mentioned CEO of Ripple, Brad Garlinghouse, and co-founder Chris Larsen as persons of interest in the budding lawsuit. In their reason for suing Ripple, the SEC mentioned a law passed by the Supreme Court which states that the law that classes an investment as security is not static but flexible.
The SEC also mentioned that the law could be twisted by those who want people to invest in certain instruments to gain massive profits. The SEC noted that there was never a time when they didn’t see XRP as an investment contract, which means that the firm was supposed to have registered it under them when they first started. Ripple has tackled the claims of the SEC, with Garlinghouse saying that their accusations are baseless.
He said that they have never shared profits with investors, and they do not have any right as to what happens to the tokens after they invest in them. Since the lawsuit, Ripple has witnessed a massive fall, with the digital asset presently selling around $0.22, after making about a 60© decline.
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