A new report that has emerged sheds light on how Ripple plans to defend itself against SEC accusations that it is illegally selling XRP as an unregistered security.
Ripple will present historical view of XRP price as evidence
The course of XRP price over the years can play an important role in Ripple’s defense. Citing sources that know about Ripple’s legal strategy, Yahoo Finance reported that Ripple plans to show that news about Ripple has no effect on XRP’s price.
June 19, 2019, when Ripple announced a strategic partnership with payment giant MoneyGram, is one of the prime examples of XRP taking horizontal transactions.
According to CoinMarketCap, XRP started on June 19, 2019 at $ 0.4288 and ended the day at $ 0.4368. Subsequently, XRP rose to $ 0.5055 on June 22nd.
Ripple also plans to highlight payment products that have nothing to do with XRP to show that its business model is not tied to a token.
The company was created long before XRP
The company is also expected to demonstrate that the Ripple brand existed “years before the creation of XRP” and has a healthy liquidity in crypto markets that currently have nothing to do with Ripple.
The company will reportedly claim that the routine sales of its local presence are very small compared to XRP’s overall trading volume.
In addition, Ripple will claim that XRP sales were made without buyers realizing that they were buying from Ripple. This means that the company believes and the transaction itself cannot be an investment contract.
The pre-hearing conference on the case was held on February 22nd.