A new report sheds light on how Ripple plans to defend itself against allegations by the SEC of illegally selling XRP as an unregistered security.
XRP’s price over the years could play a key role in Ripple’s defense. Quoting sources with knowledge of Ripple’s legal strategy, Yahoo Finance reports that Ripple plans to show that news about Ripple had no impact on the price of XRP.
A major example is June 19, 2019 when XRP traded sideways when Ripple announced a strategic partnership with payment giant MoneyGram.
According to CoinMarketCap, XRP started at $ 0.4288 on the 19th and ended the day at $ 0.4368. Over the next three days, XRP hit a high of $ 0.5055 on June 22nd.
According to reports, Ripple is also planning to highlight its non-XRP-related payment products to show that its business model does not rely on a token.
The company is also expected to act in the event that the company existed “years before XRP was founded” and currently has healthy liquidity in the crypto markets that has nothing to do with Ripple.
The company will reportedly claim that routine sales of its domestic asset are too small compared to XRP’s total trading volume.
Additionally, Ripple will argue that the sale of XRP was made with no buyers who didn’t realize they bought from Ripple. The company is convinced that the transaction cannot be an investment contract.
A preliminary conference on this case has been scheduled for February 22nd.
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Featured image: Shutterstock / Blue Andy