A new report is shedding light on how Ripple plans to defend itself against the SEC’s accusations that it illegally sold XRP as an unregistered security.
The price of XRP through the years could play a key role in Ripple’s defense. Citing sources with knowledge of Ripple’s legal strategy, Yahoo Finance reports Ripple plans to show that news stories about Ripple have had no impact on the price of XRP.
A key example is from June 19th of 2019, when XRP traded sideways as Ripple announced a strategic partnership with the payments giant MoneyGram.
According to CoinMarketCap, XRP began the 19th at $0.4288 and ended the day at $0.4368. In the three days that followed, XRP spiked to a high of $0.5055 on June 22nd.
Ripple also reportedly plans to spotlight its payment products that have nothing to do with XRP to show its business model is not dependent on a token.
The company is also expected to make the case that the company was “around for years before the creation of XRP” and currently has healthy liquidity in the crypto markets that has nothing to do with Ripple.
The company will reportedly make the case that the routine sales of its native asset are too small in comparison to XRP’s overall trading volume.
Furthermore, Ripple will argue its sales of XRP were made without buyers realizing they were purchasing from Ripple, which the company believes in and of itself means the transaction couldn’t be an investment contract.
A pretrial conference on the case has been set for February 22nd.Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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