Crypto traders must live under a rock if they haven’t heard about the Securities and Exchange Commission’s recent lawsuit against Ripple’s developers. The majority of crypto exchanges delisted XRP tokens and halted XRP trades after the SEC filed an official lawsuit. Ripple’s Executive Chairmen and CEO will attend a virtual court hearing set for February 22, 2021, to address accusations of trading XRP tokens as securities. The virtual pretrial conference with Judge Analisa Torres will address both parties’ statements and determine whether a settlement will be reached.
Ripple and the SEC must file a joint statement before February 15, 2021, to outline their cases. After the SEC’s lawsuit, Ripple didn’t take responsive action until recently when the startup DeFi filed affirmative defenses. Ripple has maintained its stance throughout the investigation that XRP tokens aren’t considered securities. On January 29, Ripple filed a ninety-three-page response to the claims brought forth by the Securities and Exchange Commission.