New York’s Southern District Court has set the date for its first trial for the US Securities and Exchange Commission’s case against Ripple.
All parties are directed to attend an initial pretrial conference with Judge Analysis Torres on 22 February.
The trial process will be conducted remotely by telephone. Pretrial conferences are usually designed to help judges organize cases and establish a timeline for when pretrial activities will take place. Judges can also use conferences to set a tentative trial date.
The SEC said Ripple had illegally sold XRP as an unregistered security from 2013 to the present. His case also names Ripple CEO Brad Garlinghouse and co-founder Chris Larsen in their respective capacities.
“As noted, the Supreme Court made clear in Howey’s decision of 1946 that the definition of whether an instrument is an investment contract and therefore a security is a ‘flexible rather than static principle, capable of adapting to meet the innumerable and variable schemes devised by those seeking other people’s money with the promise of profit. ‘
At all relevant times during the Offer, XRP is an investment contract and therefore a guarantee subject to the registration requirements of the federal securities laws. “
Ripple said the SEC was wrong in fact and law, stating that “XRP holders do not share Ripple profits or receive dividends, nor do they have voting rights or other corporate rights.”
The regulator’s accusations have sparked a rapid plunge for the digital asset, which had plummeted from around $0.60 when news of the lawsuit first broke, to $0.21 at issue – a drop of up to 61%.