Share this article
Ripple, SEC Say Settlement Unlikely Before Trial Over Alleged Securities Violations
The SEC's case over allegedly unlawful sales of XRP by Ripple to retail investors is entering the discovery phase.
Updated Sep 14, 2021, 12:11 p.m. Published Feb 16, 2021, 9:51 a.m.
The U.S. Securities and Exchange Commission (SEC) and Ripple said Monday there's little chance of settlement ahead of the expected trial of the blockchain payments firm over alleged securities infractions.
STORY CONTINUES BELOW
In a discovery letter addressed to Federal Judge Analisa Torres at the U.S. District Court for the Southern District of New York, the parties said that having previously discussed the matter, they "do not believe there is a prospect for settlement at this time." They further noted that previous settlement discussions took place under the Trump administration and were mainly conducted with division directors who have since left the SEC.
More widely, the letter addresses the discovery for the pending trial, with two parties agreeing (or not) the formal process of exchanging information about the witnesses and evidence they'll be presenting.
In December, the SEC sued Ripple over alleged violations of federal securities laws. It said the company, CEO Brad Garlinghouse and Chairman Chris Larsen sold over $1 billion in XRP to retail investors without registering the cryptocurrency as a security or seeking an exemption.
Notably, the SEC told the judge in Monday's letter it is seeking to take five depositions beyond the 10 normally allowed over allegations "Ripple and Larsen received two legal memos warning them that there was some risk that XRP would be considered 'investment contracts' and therefore securities under the federal securities laws."
Read more: Ripple Responds to SEC Lawsuit Over XRP Sales
Ripple has refused to comply saying the documents fall under attorney-client privilege and that the SEC’s request is "improper and lacks legal foundation." The SEC may ask the court to compel Ripple to provide documents and related deposition testimony, the regulator said in the letter.
The initial pretrial conference between the defendant, the prosecutor, and the judge will be held on Feb. 22. The SEC aims to file a first amended complaint by Feb. 19, 2021, with the discovery period now set to be complete by Aug. 16, said the letter.
CORRECTION (13:20 UTC, Feb. 16, 2020): Amended headline to remove use of term "fraud," which was not alleged in the complaint.
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Key U.S. Senator on Crypto Bill, Lummis, Negotiating Dicey Points With White House
The Republican lawmaker who is among the core negotiators on the U.S. market structure bill said the White House has rejected some ethics language.
What to know:
- Sen. Cynthia Lummis (R-Wyo.) said she is negotiating with the White House on behalf of Senate Democrats trying to insert ethics provisions into Congress' market structure legislation.
- Lawmakers should reveal a new draft market structure bill by the end of the week and hold a markup hearing next week, she said.
Top Stories
