XRP holders will be able to assist the court as friends of the court, but they are not allowed to interfere in the lawsuit directly
Federal Judge Annalisa Torres rejected the request of XRP holders to intervene in the US Securities and Exchange Commission’s case against blockchain firm Ripple because it would “unnecessarily delay the action.”
However, there is a silver lining. Movers can now proceed as amici curiae (in Latin: “friends of the court”), which means that they will be able to give summaries:
Accordingly, movers, in their personal capacity, are permitted to act as a friend of the court in this proceeding. As such, attorneys should be allowed to assist the court by briefing the legal issues relevant to the case as previously approved by the court.
It should be noted that XRP holders are not allowed to provide evidence or provide witnesses. Their participation is limited to legal issues to prevent bias.
As reported by U.Today, the proposal was initially rejected without prejudice in mid-March due to a technical incident.
Attorney John Deaton of Deaton Law Firm, who led the effort to bring the XRP community into Ripple’s legal battle with the Securities and Exchange Commission, claimed that individuals, as well as companies, were harmed by the lawsuit.
The Securities and Exchange Commission (SEC) argued that XRP holders were forcing the agency to take legal action against them by paraphrasing Ripple’s defense talking points.
The regulator also stated that granting the transferred “friends” status would be “inappropriate” due to their bias. The XRP community has been accused of spreading “false statements” about the government agency.