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AIBC

XRP hodlers’ not allowed to be defendants in SEC v Ripple case

Posted:: Oct 05, 2021 10:30 Category: Americas , Crypto , Regulatory , Posted by Jeremy Micallef

Each individual XRP hodler who would be seen as a defendant in the case would have to see the SEC launch enforcement actions against them, the judge ruled

The continuing dispute between Ripple and the US Securities and Exchange Commission (SEC) has been thrown another curveball. The U.S. District Judge Analisa Torres decided on Monday 4th October that the persons holding Ripple’s XRP token may not participate as defendants in their continuing proceedings.

The verdict comes after many XRP token owners who are supposed to file briefings as “friends of the court” to support Ripple’s contention that the token does not contravene securities laws.

Judge Torres stated that the SEC would be forced to take enforcement action against XRP holders in accordance with Law360. She said that the case that Ripple and the token owners requested for quick resolution will also be delayed.

The judge, however, decided that the participation of token holders can be “amicus curiae” — a party that has not been involved in the case but is permitted to offer information or advice to the court.

“The court concludes that amici status strikes a proper balance between permitting movants to assert their interest in this case and allowing the parties to remain in control of the litigation,” Torres said.

Ripple Counsel Andrew Ceresney stated they were happy with the result for XRP hodlers who may now “share their meaningful perspectives with the court”.

The XRP hodlers said they would lose billions if the regulator won the case, in a motion to intervene filed on March. They also challenged the SEC’s asserted reasons for investor protection.

“Claiming to protect investors, the SEC is seeking $1.3 billion in alleged ill-gotten gains from the named defendants, but by alleging that today’s XRP may constitute unregistered securities, the SEC caused over $15 billion in losses for XRP holders,” the filing said.

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