The US Securities and Exchange Commission and Ripple reported that they do not see prospects for a pre-trial settlement of the conflict through an amicable agreement. The SEC accuses Ripple of continuing to sell unregistered securities in the guise of digital tokens.
The US Securities and Exchange Commission (SEC) and Ripple sent letters to Federal Judge Analisa Torres at the Southern District Court of New York. In the documents, both sides stated that following the preliminary discussion, they came to the conclusion that they “do not believe there is a prospect for settlement at this time.” They also noted that previous negotiations with the aim of a pre-trial settlement took place under the administration of former US President Donald Trump and were mainly conducted with the heads of SEC divisions, who subsequently left their posts.
An initial pre-trial consultation between the accused, prosecutor and judge will take place on 22 February. The SEC intends to file a revised claim by February 19, 2021, and the disclosure deadline should now be completed by August.
In December, the SEC filed a lawsuit against Ripple, accusing the company of violating federal securities laws. The lawsuit alleges that the company, CEO Brad Garlinghouse and Chairman Chris Larsen sold over $1 billion worth of unregistered securities in the form of XRP tokens to retail investors.
Garlinghouse, in response to the allegations, called the SEC’s actions an attack on the entire crypto industry.