The District Court of the United States of America in the Southern District of New York has set February 22, 2021, as the date for the foreclosure of the lawsuit filed by Replay Labs and its lead actors by the Securities and Exchange Commission.
According to a court document filed Tuesday, an adviser representing all parties to the case will hold a telephone pretrial conference. As part of preparations for the preliminary hearing, the parties to the case will file a joint letter one week before the date of the pre-treaty:
“A brief description of the case, including (1) the factual and legal basis for the claim (s) and the defense (s), (2) any concerned motion and () the possibility for a settlement.”
In early December, the SEC filed a lawsuit against Ripple, alleging that the blockchain firm had sold XRP tokens in violation of the Securities Act. The legal status of XRP as a commodity or security has long been the subject of debate inside and outside the crypto space.
Some cryptocurrency exchanges have responded to the lawsuit by suspending XRP trading or deleting tokens altogether from their platforms. Investment companies such as Bitwise Asset Management have also reduced their XRP holdings in the wake of the SEC implementation action.
As previously reported by Sectelgraph, the corrugated partner MoneyGram has distanced itself from the company, insisting that it does not use Replenet. The price of XRP has also dropped significantly, down from 65% in December.
In a statement issued earlier this week, Ripley accused the SEC of harming XRP token holders. Replay also stated its intention to respond to the commission’s claims against the company.
