SEC vs Ripple Pretrial Conference Set for Feb; Majority of Customers & XRP Volume Not in the US
Ripple says the action against it is “an attack on the entire crypto industry” and the lawsuit has “affected countless innocent XRP retail holders” that have no connection with the company.
The list of crypto service providers announcing no more support for XRP in light of the SEC suing Ripple and its top two executives now include Coinbase, Bittrex, OKCoin, Crypto.Com, Bitstamp, OSL, Beaxy, Swipe, CrossTower, Stex, Ziglu, Eobot, Sarson Funds, Jump Trading, Galaxy, B2C2, Bitwise, 21Shares, Bitcoin Suisse, Wirex, Simplex, and Grayscale.
An Indonesia-based exchange is also informing its customers of the risk of XRP delisting “in connection with the United States Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, Inc which was deemed to have violated the regulations regarding securities.”
In response to market-wide delisting, Ripple published a statement where it says the “majority of our customers aren’t in the U.S. and overall XRP volume is largely traded outside of the U.S.”
While Ripple will continue to operate and support all products and customers in the U.S. there are “clear rules of the road for using XRP in the UK, Japan, Switzerland, and Singapore,” says the San Francisco-based company.
The company further reiterated that the SEC action against Ripple is “an attack on the entire crypto industry here in the United States.”
This lawsuit has “already affected countless innocent XRP retail holders with no connection to Ripple” and muddled the waters for traders, exchanges, and market makers said the fintech company adding that they will defend themselves and get clarity for the US crypto industry.
Meanwhile, the initial pretrial conference of SEC vs Ripple Labs Inc. is set for February 22nd, 2021.
“The point of this conference is to determine if there is a hope of settling and discovery dates,” said Jesse Hynes, an NJ Attorney.
In this process, the parties will basically learn everything they can about the other side’s facts and get to request documents and take depositions (interviews). “Judge Torres generally sets a 120 day period for fact discovery (which may be shortened if there are exigent circumstances),” said Hynes adding from there, another 45 days are allowed for Expert discovery.
It is after the final pretrial submission date, which is 30 days after, that the trial is set. As such, if case this goes to trial, at best the market is looking at September 5, 2021, “but that is unlikely” because “there are always delays and consents to push back dates and extend discovery.”
So, it will be a long battle that could take years to come to a result. Meanwhile, XRP price is suffering, having fallen to levels not seen since 2017, currently trading around $0.20.
In the meantime, XRP enthusiasts have launched a petition “Granting Ripples (XRP) token as a non security by the SEC” on Change.org. So far, the petition has only got 132 signatures.