The lawsuit between the U.S. Securities and Exchange Commission [SEC] and Ripple has seen quite a few developments in the recent past. After days of going back and forth by the two parties in the lawsuit, the two have agreed on a proposed schedule for briefing the individual defendants’ motions to dismiss. The US SEC had filed a lawsuit against the blockchain firm for allegedly selling unregistered security, XRP.
Ripple and SEC reach an agreement for a hearing.
According to the filing, the defendants in the case, Ripple co-founder Christian A. Larsen and Bradley Garlinghouse reached an “agreement regarding a proposed schedule for briefing the Individual Defendants’ motions to dismiss.” This offers a level of clarity in the muddled timeline of the ongoing lawsuit. The letter was provided by the SEC informing Judge Torres about the defendants’ agreement on the proposed schedule. Adding to these letters, Garlinghouse and Larsen’s legal team also filed for a motion to file a combined bride of 10 pages or less.
— James K. Filan (@FilanLaw) March 13, 2021
Ripple continues to deny all allegations made by US SEC.
Ripple noted in its response that the functionality and liquidity of XRP are wholly incompatible with securities regulation. “To require XRP’s registration as security is to impair its main utility… Treating XRP as security… would subject thousands of exchanges, market-makers, and other actors in the gigantic virtual currency market to lengthy, complex, and costly regulatory requirements never intended to govern virtual currencies,” Ripple Labs said in its response to the allegations. Since the lawsuit, Ripple has faced a lot of troubles as several exchanges delisted XRP from their platforms, and recently the firm ended its partnership with MoneyGram.