SEC vs. Ripple: Settlement Now Unlikely as Pretrial Draws Nigh

SEC vs. Ripple: Settlement Now Unlikely as Pretrial Draws Nigh

The US Securities and Exchange Commission (SEC) and Ripple, the host company of the sixth-largest cryptocurrency, have both asserted that there will be no settlement on the current lawsuit against Ripple before the official trial date, as many cryptocurrency enthusiasts anticipated.

The assertion was confirmed through a letter dated February 15, 2021, and was addressed to Judge Analisa Torres. In the letter, both the SEC and Ripple noted that they “do not believe there is a prospect for settlement at this time” since the last time they discussed the issue.

The parties also noted that all discussions were made under the previous administration with several SEC executives who are no longer with the commission, considering the change-of-power that occurred in the SEC late last year.

Meanwhile, some disagreements about the discovery of the trial arose, as both parties argued about the evidence, witnesses, and information to be presented in court.

The SEC noted that it was working towards taking five confirmations beyond the ten allowed over allegations, adding that it could request the court to force Ripple to provide some documents and relevant deposition testimony to support its argument.

That said, the cryptocurrency-related company has declined to accede to this request, noting that the documents are protected by attorney-client privilege, adding that the SEC’s demand is “improper and lacks legal foundation.”

The SEC vs. Ripple
The SEC and Ripple issue began in the middle of December 2020, after the regulatory body filed a lawsuit against Ripple for carrying out unauthorized securities sales per the federal securities laws.

The commission claimed that the company’s CEO and Chairman, Brad Garlinghouse and Chris Larsen, sold more than $1 billion in unregistered XRP to investors.

The first pretrial conference for the case is scheduled to hold on February 22. The letter asserted that both parties have agreed to set August 16, 2021, as the deadline for the discovery phase, which involves the assembling of all evidence and argument.

 

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Author : Azeez Mustapha

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Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.