A new report sheds light on how Ripple plans to defend itself against accusations from the SEC that it illegally sold XRP as an unregistered security.
The price of XRP over the years could play a key role in Ripple’s defense. Referring to sources with knowledge of Ripple’s legal strategy, Yahoo Finance reported Ripple intends to show that news reports about Ripple had no effect on the price of XRP.
A key example is from June 19, 2019, when XRP traded sideways as Ripple announced a strategic partnership with payment giant MoneyGram.
According to CoinMarketCap, XRP started the 19th at $ 0.4288 and ended the day at $ 0.4368. In the next three days, XRP rose to a high of $ 0.5055 on June 22nd.
Ripple also allegedly intends to highlight its payment products that have nothing to do with XRP to show that its business model is not dependent on a sign.
It is also expected that the company will make the case that the company was ‘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 original asset are too small compared to XRP’s overall trading volume.
Furthermore, Ripple will argue that the sale of XRP was done without buyers realizing that they were buying from Ripple, which the company believes and means in itself that the transaction cannot be an investment contract.
A pre-trial hearing on the case was scheduled for February 22.
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