TL;DR Breakdown
- Ripple prepares defense for SEC lawsuit.
- The pretrial conference for the case is set for February 22.
A new report has shown how Ripple is planning to defend the lawsuit filed against it by the Securities and Exchange Commission (SEC) of the United States. Yahoo Finance published this report.
According to the lawsuit, the SEC accuses Ripple of selling XRP as an unregistered security to the public. However, the firm has denied any wrongdoing and is planning to defend its position by citing how different news stories about the company do not affect the performance of their token’s price.
One notable example of this is when the San Francisco-based company announced a partnership with MoneyGram on June 19, 2019.
During this period, the price of XRP started trading for $0.4288 but ended the day at $0.4368. However, the price of the asset climbed to a high of $0.5055 on the 22nd of that month.
Ripple is also planning to base its defense on its payment products to nothing to do with the native token. This way, the firm believes it would prove that its business model is not dependent on a token.
The crypto firm would also be stating that the company has been in existence long before creating the XRP token. Also, the firm is aiming to prove the token has healthy liquidity in the crypto market.
Ripple pretrial conference is set for February
The pretrial conference for the lawsuit between the SEC and Ripple is set for the 22nd of February this year.
As stated earlier, the firm is planning a robust defense against the SEC, and part of its defense for the case has been stated.
Several crypto exchange firms have delisted the asset. The XRP community has also filed a petition requesting that the government recognize the asset as a token.
