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Ripple and SEC Say Settlement Is Currently Not an Option

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by Oluwapelumi Adejumo · 3 min read
Ripple and SEC Say Settlement Is Currently Not an Option
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Barring any last-minute changes, Ripple-SEC lawsuit is expected to last all year long as the pre-trial conference has been set for February 22.

Ripple and the Securities and Exchange Commission (SEC) are assiduously gearing up for their impending face-off in the law court as both parties have submitted a letter that presents their arguments ahead of the pre-trial. Not only that the parties have also admitted that there is little to no chance of them settling the litigation outside the courtroom presently.

The letter addressed to Judge Analisa Torres at the US District Court for the Southern District of New York said that the bodies had actually previously discussed the issue of a possible settlement, however, the change in government has impeded the success of such talks. According to them, division directors who were in charge of the talks under President Trump have left the commission and there have been no new talks since then. As such, settlement is currently out of the picture in this impending lawsuit, however, they also disclosed that if there are any changes to that in the nearest future, then the court would be properly notified.

Discovery for the upcoming pre-trial was also discussed in the letter with the SEC saying they could, at some point during the trial, request to take five more depositions beyond the 10 normally allowed. This request was denied by Ripple and the commission stated that it may ask the court to order the crypto company to provide necessary documents and other depositions’ requests. 

Accordingly, the financial regulator also said the defendants have “received two legal memos warning them that there was some risk that XRP would be considered ‘investment contracts’ and therefore securities under the federal securities laws.” Ripple has also refused to comply with this on the basis that this request was “improper and lacks legal foundation” and that the documents requested fall under “attorney-client privilege.”

SEC had sued Ripple and top executives of the firm towards the end of last year for violating federal securities laws. According to the lawsuit, the company and its executives had sold over $1 billion unregistered securities to retail investors under the guise of a crypto asset. Ripple has denied any wrongdoing and has vowed to stand against the “bullying” of the regulator.

Barring any last-minute changes, the lawsuit is expected to last all year long as the pre-trial conference has been set for February 22. The commission has stated that it aims to file a first amended complaint by the 19th of this month. The discovery period has also been set to be completed on or before August 16, 2021.

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Oluwapelumi Adejumo

Oluwapelumi is a believer in the transformative power Bitcoin and Blockchain industry holds. He is interested in sharing knowledge and ideas. When he is not writing, he is looking to meet new people and trying out new things.

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