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 over the years can play a key role in defending Ripple. Citing sources with knowledge of Ripple’s legal strategy, Yahoo Finance reports that Ripple plans to show that news about Ripple has had no impact on the price of XRP.
An important example is from June 19, 2019, when XRP negotiated sideways while Ripple announced a strategic partnership with payments giant MoneyGram.
According to CoinMarketCap, XRP started on the 19th at $ 0.4288 and ended the day at $ 0.4368. Over the next three days, the XRP peaked at $ 0.5055 on 22 June.
Ripple also plans to highlight its payment products that have nothing to do with XRP to show that its business model is not dependent on a token.
The company must also present the case that the company existed “years before the creation of XRP” and currently has healthy liquidity in the crypto markets that have nothing to do with Ripple.
The company will allegedly argue that the routine sales of its native asset are very small compared to XRP’s overall trading volume.
In addition, Ripple will argue that its XRP sales were made without buyers realizing that they were buying from Ripple, which the company believes means that the transaction could not be an investment contract.
A pre-trial conference on the case was scheduled for February 22.
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