Saturday, July 20, 2024

SEC Ripple court battle gets murkier, regulator doesn’t want to recognize XRP holders.

The US Securities and Exchange Commission (SEC) wants to block XRP holders from helping Ripple’s defense. The regulator in an official objection opposed the decision to recognize 1,746 XRP holders as “amici curiae” (friend of the court) with attorney John E. Deaton.

The attorney has 3,252 affidavits signed by the token holders. It states that they are victims of the SEC’s lawsuit against Ripple as a result of lost profits. XRP token holders claim that they either did not assume legal responsibility for purchasing the token XRP, that they bought it for utilitarian purposes instead of investment purposes, or they did not buy based on promises made by Ripple and its representatives.

The SEC, in its objection, said the token holders are attempting to operate outside of strictly legal issues. It highlighted that movants do not propose briefing on legal issues. They want to present arguments based on 3,252 affidavits attesting to certain facts. The regulator cited alleged threats by Deaton against former SEC chairman Jay Clayton as reasoning to dismiss him as amicus. Moreover, the SEC included a redacted letter dated June 7 to Judge Torres. It cites a YouTube video from 2021 wherein Deaton stated that he might walk over and slap the profanity out of Jay Clayton.

Ripple’s attorney claimed that the SEC has been inconsistent with its application of the law against Ripple, Garlinghouse, and Larsen. Deaton tweeted that if the SEC truly thought XRP was a security, it would have just filed an injunction against the company and issued a cease and desist order against the two executives and Jed Caleb from selling the XRP tokens.

Cryptured Team
Cryptured Team
The writers team at is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.

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