On Monday, February 22, the first court hearing will take place in the case of the US Securities Commission (SEC) v.Ripple, which is accused of illegally selling unregistered XRP securities and market manipulation.
</p>Ripple seeks support from SEC chairman
Today, February 22, the firstcourt hearing in the SEC case against Ripple. The prosecutor in the case is the US Securities and Exchange Commission, which has filed a claim against the company's founders, Brad Garlinghouse and Chris Larsen, for issuing and selling the XRP token. According to the SEC, this is not a registered security.
The defendants disagree with this accusation and are readysubstantiate your arguments. To reinforce their position, the founders of Ripple enlisted the support of ... the SEC, or rather the former chairman of the Securities Commission, Mary Joe White. In an interview with Fortune magazine, she pointed out several problems in the Ripple case, in particular, during the investigation into the circumstances.
“As a former U.S. attorney and chairmanSEC, I know that if it took this long to get to the bottom of a case, it's better not to bother with it at all. And you certainly shouldn’t do things like that before leaving office,” she said.
Mary Jo White also stressed that the Commission is completely wrong in accusing Ripple. In addition to supporting White, Ripple prepared a "tough SEC response" that Garlinghouse himself had previously reported.
Please note that the SEC requires recognition of the sale of tokensXRP is illegal, and also insists that Larsen and Garlinghouse return the money received from the sale of tokens to users, pay a fine for violating the law, and are no longer allowed to trade securities.
XRP Token Recovers Ahead Of Litigation
It looks like the upcoming litigation doesn't seem to be of much concern to XRP token users. During the day, the cost of the cryptocurrency has grown by 9% and today is trading at around $ 0.58.
At the same time, the Ripple leadership continues to mergecoins, limiting its further growth. Last Wednesday, February 17, at least 20 million coins went to crypto exchanges from Ripple CEO Chris Larsen. This is about $ 10 million.
The main seller of XRP is stillex-technical director of Ripple Labs Jed McCaleb. He regularly disposes of billions of XRP by selling off his holdings. McCaleb receives tokens based on XRP trading volume performance and estimates that he could dump around 3 billion coins into the market in the coming months.
Since both Larsen and McCaleb are activeare getting rid of XRP, it is unlikely that Ripple will be able to resolve the conflict with the SEC in the near future. Both sides released a joint letter saying they were unable to reach an agreement and fundamentally disagreed with each other's positions. Today's court hearing will bring clarity to the future of the Ripple project. However, experts themselves are confident that legal proceedings could drag on for years.
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