SEC vs. Ripple case: Initial pretrial conference set for February 22

An initial pretrial conference in the U.S. Securities and Exchange Commission (SEC) vs. Ripple case has been set for February 22, 2021.

The New York Southern District Court will hold the conference, and Judge Analisa Torres has directed both the parties to attend it telephonically, in light of the COVID-19 pandemic.

The SEC and Ripple have also been directed to submit a joint letter by February 15, containing: "1) a brief description of the case, including the factual and legal bases for the claim(s) and defense(s), (2) any contemplated motions and (3) the prospect for settlement."

The SEC sued Ripple and two of its executives on December 22, alleging that CEO Brad Garlinghouse and co-founder Chris Larsen have raised more than $1.3 billion via an ongoing, unregistered securities sale of XRP. The SEC views XRP as a security.

According to Ripple, the SEC's lawsuit has already harmed "countless innocent XRP retail holders with no connection to Ripple." The company said the charges have "needlessly muddied" the regulatory environment for the whole crypto industry.

Since the lawsuit, various crypto exchanges, market makers, and asset managers have suspended activities connected with XRP.