SEC and Ripple abandon pre-trial settlement of the claim

by in Cryptocurrency News

Ripple

The US Securities and Exchange Commission (SEC) and Ripple said that the regulator's lawsuit over the alleged unregistered sale of securities in the form of a digital asset XRP will not be settled out of court.

In a letter to open the case, the parties stated that having previously discussed this issue, they "do not believe in the prospect of a settlement." They also noted that previous discussions on the settlement took place under the Trump administration and were mainly conducted with directors of divisions who have already left the SEC.

The first pre-trial meeting between the parties will take place on February 22.

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In December, the SEC filed a lawsuit against Ripple for alleged violations of US securities law. It says the company, CEO Brad Garlinghouse, and Chairman Chris Larsen sold over $ 1 billion worth of XRP to retail investors without registering the cryptocurrency as a security.

Ripple's response claims the SEC's claim is based on "unprecedented and ill-conceived legal theory."