A group of individuals who own XRP tokens can offer their “meaningful perspective” in the US SEC’s case accusing Ripple of violating securities law.
On October 4, the Court for the Southern District of New York has rejected the XRP token holders’ petition to participate in the Ripple lawsuit as defendants. However, Judge Analisa Torres allowed them to act as amici curiae in the lawsuit which alleges the XRP token is an unregistered security.
🚨BREAKING: Judge Torres grants amici status to @JohnEDeaton1 and Movants, and Denies Motion to Intervene in @Ripple v. @SECGov— CryptoLaw (@CryptoLawUS) October 4, 2021
ADDED to our Document Library:
✅Text of the Order from Judge Torres 👇https://t.co/4YLiv5V0kL
According to Torres, the status of the defendants “will force the SEC to take enforcement action” against investors. It will also delay the consideration of the case, the ruling says.
“The court concluded that amici status would provide an appropriate balance between allowing participants to pursue their interests in this case and giving the parties control over the course of the proceedings,” Torres said.
In March 2021, the founder of the law firm Deaton Law Firm, John Deaton, prepared a petition on behalf of 6,000 XRP holders to participate in the process. In his opinion, the interests of investors were not fully represented.
In the same month, the court allowed them to submit the relevant documents. In May, the Commission opposed the participation of XRP holders and called them “highly biased.”
Earlier, Judge Sarah Netburn rejected Ripple’s petition to disclose information about SEC employees’ transactions with Bitcoin, Ethereum and XRP.
In September, Ripple agreed to hand over internal audio and video recordings to the regulator. The court also ordered the company to provide the Commission with access to Slack messages from its employees.
As AtoZ Markets reported, the SEC is compelling Ripple to provide recordings of meetings, which the CEO of the firm Brad Garlinghouse and its co-founder Chris Larsen, as well as other high-ranking officials discussed topics related to the lawsuit.
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