Cleary Gottlieb’s Attorney Matthew Solomon, representing Ripple CEO Brad Garlinghouse at today’s pre-trial conference, said the Securities and Exchange Commission discussed market actors, including exchanges, on the securities status of XRP in numerous discussions in 2019 and before He claimed he did not warn.
“We recently learned something new. A cryptocurrency exchange seeking to list XRP met with the SEC in 2019 to learn about its legal status. The exchange did not report that it recognized XRP as a security, the exchange concluded that XRP is not a security, and He listed XRP. For these reasons, we think that sufficient information is not provided regarding the legal definition of XRP. ”
In addition, Garlinghouse submitted a petition to dismiss the lawsuit filed by the Securities and Exchange Commission at today’s first pre-hearing conference. Solomon said that his client did not know that XRP could potentially be classified as an investment contract, but denied that the SEC was aiding and abetting the sales of Ripple, the accusation central to its amended claim.
“SEC’s claims reveal the opposite of what they wanted to do. Garlinghouse did not know or grossly neglect that XRP was or could be an investment contract. ”
Ripple’s former CEO Chris Larsen is represented by Martin Flumenbaum of Paul Weiss.
The SEC, represented by Jorge Gerardo Tenreiro, Jon Daniels and others, claims that XRP was offered and sold by the company as an investment contract.
The regulator warned Federal Judge Analisa Torres that it was “very likely” to submit a proposal against Ripple’s defense. In response, Ripple’s lawyer Andrew J. Ceresney accused the company of trying to “stop the discovery.”