US District Judge Annalisa Torres ruled on Monday that a group of individuals owning… XRP They could provide their “meaningful viewpoint” in the US Securities and Exchange Commission (SEC) case v. ripple, despite of denial Invite them to intervene as defendants.
United State Organizer feet lawsuit against the blockchain company in December of last year, alleging a violation of the Securities Act.
XRP holders as friends of the court
“We all got friend status today,” John Deaton of Deaton Law Firm, who represents XRP holders, wrote on Twitter.
We were all given the status of a friend today! https://t.co/j2mBXooB4p
– John E Deaton (@JohnEDeaton1) October 4, 2021
While dismissing an attempt by XRP holders to interfere as a class in the case, Judge Torres argued that the regulator would be required to take enforcement action against each individual XRP holder if they were allowed to participate as defendants.
The regulator argued against allowing token holders to act as a friend, claiming that they were not neutral parties, but Judge Torres disagreed and ruled that “Putting a friend strikes an appropriate balance between allowing the Movants to assert their interest in this case and allowing the parties to remain in control of the litigation.”
Despite rejecting an attempt by XRP holders to join the case as defendants, Judge Torres ruled that they could provide opinions on certain legal issues in the lawsuit.
“Movers may view XRP differently from defendants, and therefore may stress different arguments, thus, even if intervention is not available, they will provide the court with a meaningful perspective,” Torres added, explaining that “in order to maintain a balance between the parties and amici, the court will not allow movers, as friends, to present evidence or provide witnesses.”
The court’s decision was celebrated as a progression of the case by those on Ripple’s side from the battle.
XRP holders have long said the SEC lawsuit is a direct attack on them. Now it’s official. The court ruling allows John Deaton to share his “purposeful view” to help the court “come to an appropriate decision.” Another important (and positive) development. https://t.co/JXeyhlKABT
– Stuart Alderoty (@s_alderoty) October 4, 2021
“Another important (and positive) development,” Ripple General Counsel Stuart Aldrotti commented.
De facto defendants
Arguing that they were actually defendants in the case, with the aim of protecting their interests, XRP holders sought to to intervene In the case in March 2021.
Claiming to protect investors, the SEC is seeking $1.3 billion in alleged illicit gains from Defendants, but by claiming that today’s XRP may constitute an unregistered security, it is The SEC caused more than $15 billion in losses to XRP holders. Hence, the appropriate question is who, Exactly, does the SEC protect by stalking XRP,” read the note supporting the XRP holders’ movement to intervene in the case.
As the legal saga continues to unravel, the Securities and Exchange Commission (SEC) continues efforts To introduce the cryptocurrency market in the United States under the “Public Policy Framework”.
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