2 November 2024
Court Has Set Its Date For SEC Case Against Ripple
The most awaited case of the U.S. Securities and Exchange Commission’s case against Ripple has got its date from New York Southern District Court.
On February 22nd, the parties are asked to be present at an initial pretrial conference with Judge Analisa Torres.
As per the sources, the proceeding is scheduled to be held remotely via telephone. Pretrial conferences are generally a period before a judicial trial that helps judges organize a case and create a timeline for when pretrial activities will be carried out. The judge can also ask for the conference to set a tentative trial date.
SEC has charged Ripple for selling XRP as unregistered security from 2013 until now. It has also put charges against Ripple chief executive officer Brad Garlinghouse and co-founder Chris Larsen.
“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 shared a statement where they claimed the SEC is wrong on the facts and the law.
“XRP holders do not share in the profits of Ripple or receive dividends, nor do they have voting rights or other corporate rights.”
The SEC charges against Ripple have put XRP in trouble as its price falls from $0.60 when news of the lawsuit first broke, to $0.21 at the time of publishing – a 61% decline.
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