As a report has it, the New York Southern District Has Set its first court date for the case between United States Securities and Exchange Commission (SEC) and Ripple Labs Inc.
All parties involved are directed to appear for an initial pretrial conference with Judge Analisa Torres on 22nd February 2021.
According to the report, the proceedings will be conducted via telephone. Pretrial conferences are specifically designed to help judges organize a case and create a timeline for when pretrial activities will be held. A tentative trial date can also be set by the judge during a pretrial conference.
— Leonidas Hadjiloizou (@LeoHadjiloizou) December 29, 2020
Recall that the SEC accused Ripple of illegal sales of the digital token XRP as an unregistered security from 2013 until now.
The lawsuit also mentioned Ripple CEO Brad Garlinghouse and co-founder Chris Larsen for failing to register their respective sales of XRP, which relatively worth $600 million.
The suit filed by SEC against Ripple reads in part as follows:
“As noted, the Supreme Court made clear in its Howey decision of 1946 that the definition of whether an instrument is an investment contract and therefore a security is a ‘flexible rather than a static principle, one that is capable of adaptation to meet the countless and variable schemes devised by those who seek the use of the money of others on the promise of profits.’
At all relevant times during the Offering, XRP was an investment contract and therefore a security subject to the registration requirements of the federal securities laws.”
Ripple Says the SEC Is Wrong
Ripple, the blockchain payment firm based in San Francisco, has vowed to respond to SEC’s attack. The firm believes that the SEC is wrong based on the facts and the law, stating that “XRP holders do not share in the profits of Ripple or receive dividends, nor do they have voting rights or other corporate rights.”
The allegation leveled against Ripple by SEC has significant affected the price of XRP in the market. The cryptocurrency has since lost its footing around $0.6 to now trade around $0.20 at press time.