SEC Scores Own Goal by Objecting to XRP Holders Intervening in The Lawsuit

SEC Scores Own Goal by Objecting to XRP Holders Intervening in The Lawsuit

The U.S. Securities and Exchange Commission (SEC) attempts to stop XRP holders from joining the on-going lawsuit as third parties.

In a letter to Judge Analisa Torres, the SEC’s Senior Trial Attorney Jorge Tenreiro argued that XRP holders had not clarified their actions. What’s more, Tenreiro states consolidation/coordination of claims is statute-barred without the SEC’s say-so.

“Movants do not explain what claims they would assert against whom in this action if the Court were to permit them to intervene. But Congress has barred by statute the consolidation or coordination of claims without the SEC’s consent, and sovereign immunity bars Movants’ claims against the SEC. That alone precludes Movants’ proposed intervention.”

XRP Holders Want Representation

The ongoing legal action against Ripple has become a complex case involving multiple motions that each requires judgment. In this latest example, the SEC was responding to a pre-motion letter filed by Attorney John Deaton.

Deaton called on Judge Torres to allow intervention by over ten thousand XRP holders. This would ensure the case considers the interests of all stakeholders, making certain those interests are “fully and vigorously defended.” He argues this is necessary as neither the SEC nor Ripple represents the holders of XRP.

“Allowing us to intervene is appropriate because neither party in the case currently represents the holders and users of XRP. A key aspect of Ripple’s defense will be to demonstrate that they have no duty or obligation to XRP holders, and given the SEC’s actions thus far, we can’t expect it to even consider the interests of XRP holders.”

While the SEC rejects this argument, by contrast, Ripple’s attorneys have expressed no objection to the intervention by XRP holders.

SEC Running Out of Room to Maneuver

Attorney Jeremy Hogan, who is not a party to the case, assessed the intervention saying this spells trouble for the SEC.

A significant component of the SEC’s case against Ripple is the allegation that XRP sold by Ripple, in the present day, are unregistered securities. This implies all XRP constitutes unregistered securities, including those held by XRP holders.

Hogan makes the point that the SEC’s purpose is to protect investors. But ten thousand XRP holders came forward to say they have been harmed, not protected, by the SEC’s actions. This plays into Ripple’s strategy of demolishing the SEC’s case on the grounds they failed to consider the secondary market.

“The SEC just wants some vague ruling that sales constitute sales of unregulated securities, and give the Judge some vague promise, ‘don’t worry Judge, we won’t be going after the secondary market of course not, we’re the good guys, we’re sticking up for the small people.’”

By objecting to the intervention, the SEC is somewhat corned because it shows their allegations are ill-defined. Is XRP inherently a security? Or, is the lawsuit about sales by Ripple and Garlinghouse only?

XRP daily chart

Source: XRPUSD on TradingView.com

Published at Mon, 29 Mar 2021 12:00:25 +0000

ALTCOIN NEWS BITCOIN NEWS BLOCKCHAIN NEWS CRYPTOCURRENCY NEWS ETHEREUM NEWS EXCHANGES NEWS LITECOIN NEWS MARKET NEWS REGULATION NEWS
Gamestop
Important Facts of Gamestop Entering into Cryptomarket
UniFarm
UniFarm Raises $2 Million After Launching Innovative Farming Pool Featuring 17 Top DeFi Projects
XRP, FTX Token, Waves Price Analysis
#HODL #SHILL YOUR SH*T COIN! #SPOTTED! #VIRALS BITCOIN SCAM WATCH FUN QUIZZES
bitcoin-scams
Top 5 Bitcoin Scams you should be aware of!
Instagram Influencer Accused of Scamming Followers Out of $2.5M In Bitcoin Scams
five assorted color cars parked inside room
WHAT WILL YOU BUY WITH YOUR BULL MARKET GAINS?
FAQ'S INTRODUCTION TO BITCOIN INTRODUCTION TO BLOCKCHAIN INTRODUCTION TO CRYPTOCURRENCY EXCHANGES
Cryptocurrency
4 Amazing Perspectives of Cryptocurrency Characteristics, Everyone Should know
How bitcoin Transactions Work
Bitcoin For Beginners: 5 Plus Important Reasons Why You Should Understand The Future Impact of Bitcoin On Society
blockchain
5 Important points about Blockchain, Cryptocurrency, and Bitcoin(Safe or Not)
EXCHANGES WALLETS
coinbase
4 Best Crypto Coins on Coinbase
flat lay gadgets beside bearded man
ULTIMATE LIST : BEST BITCOIN AND CRYPTOCURRENCY WALLETS 2021
person shopping online
2021 BEST BITCOIN AND CRYPTOCURRENCY HARDWARE WALLETS TO STORE YOUR COINS SAFE

Get more stuff like this
in your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.

Thank you for subscribing.

Something went wrong.