The U.S. District Court for the Southern District of New York has set February 22, 2021 as the date for the preliminary investigation of the lawsuit filed by the Securities and Exchange Commission against Ripple Labs and its key actors.
According to an court document filed Tuesday, counsel representing all parties on the matter will hold a pre-trial telephone. As part of the preparation for the Preliminary Hearing, the parties to the case will submit a joint letter one week before the date of the preliminary investigation regarding:
“(1) a brief description of the case, including the factual and legal basis for the claim (s) and defense (s), (2) any motions envisaged and (3) the prospect of settlement.”
Earlier in December, the SEC filed suit against Ripple, accusing blockchain company of selling XRP tokens in violation of securities laws. The legal status of XRP like a commodity or security has long been the subject of debate within and beyond the crypto space.
Several cryptocurrency exchanges have responded to the lawsuit by suspending or suspending XRP trading removing the token from their platforms all together. Investment firms like Bitwise Asset Management have that too liquidated their XRP holdings in the wake of the SEC enforcement action.
As previously reported by Ripple’s partner Cointelegraph MoneyGram distanced itself from the company claim it does not use RippleNet. The The price of XRP tokens has also fallen significantly and fell by more than 65% in December.
In a statement released earlier this week, Ripple accused the SEC of harming XRP token holders. Ripple also stated that it intends respond to the Commission’s claims against the company.