January 4, 2020 | AtoZ Markets – Holders of the 4th largest market capitalized XRP coin have petitioned the Rhode Island District Court for a Supreme Court order against the US Securities Exchange Commission (SEC). It says that the SEC by its actions caused irreparable damage to them.
At the end of December, the US regulator officially accused Ripple Inc and two company executives of illegally selling unregistered securities worth about $1.3 billion. Investors who have invested in the XRP consider the classification of XRP as a security unlawful. They filed a counterclaim claiming that the SEC caused them financial harm by their actions.
What investors accuse the SEC of
XRP holders who have taken legal action claim that the SEC does not protect the interests of American investors. The first paragraph of the statement says that by declaring XRP a security, the regulator violated the interests of investors and caused them serious financial harm.
“As chairman of the SEC, it was Jay Clayton’s (Clayton) fiduciary duty to enforce the SEC mission statement. Instead of protecting investors and sharing information to help investors make informed decisions, the Respondent [SEC] knowingly and intentionally caused multibillion-dollar losses to innocent investors,” reads the petition.
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The petition claims the Commission has had nearly seven years to make a formal announcement or work with Ripple Lab and its leadership. This is more than enough time to take action. According to the plaintiffs, the SEC acted unfairly by presenting its charges right now.
Read also: US Court Sets Date for Preliminary Hearings in SEC V. Ripple Case
The petition also states that Jay Clayton, the head of the SEC, acted with prejudice and caused irreparable harm to Ripple Labs and XRP. The plaintiffs point out that the Commission does not consider Bitcoin and ETH as securities, and such a position should apply to the 4th largest cryptocurrency, XRP. What's more, they claim that over 150 client and commercial applications use XRP as their currency.
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