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SEC Fails Attempt to Bar XRP Holders from Ongoing Ripple Lawsuit

The US Securities and Exchange Commission has ordered that XRP holders currently defined as “amici curiae” within the ongoing SEC legal conflict with Ripple Labs will retain their status, denying an application by the SEC to bar them from participating in the lawsuit.

U.S. District Judge Analisa Torres, currently presiding over the SEC lawsuit directed at Ripple, has allowed XRP holders to remain involved in legal proceedings focused on XRP’s status as a security.

A new order published by Judge Torres on July 26 denies the SEC’s request to remove XRP holders from the court, allowing XRP holders to retain amici curiae status but denying them the opportunity to assist in the evaluation of the qualifications of SEC experts.

XRP hodlers will, however, be allowed to file applications regarding concerns they may have regarding the SEC expert involved with the case. The order also denies an SEC motion to prevent Ripple legal defense lead John Deaton.

John Deaton Remains Involved in Ripple Lawsuit

The SEC’s motion to deny XRP holders amici curiae status stems from the filing of a motion by John Deaton and XRP holders, referred to as Movants within the ongoing case, to intervene in proceedings as representatives of similarly situated XRP holders.

A motion filed by Deaton in May requested approval for the legal lead to represent 67,000 individual XRP holders as a direct response to SEC attempts to introduce key experts to testify on the intentions of XRP holders when purchasing XRP assets.

SEC Attempts to Block XRP Holders from Participating in Case

Amicus curiae status provides individuals with the ability to submit documents to the court, referred to as amicus briefs, that are relevant to the case on the proviso that submitted documents are approved by the court in advance.

Court documents subsequently released to the public reveal requests submitted to the court by the SEC to prevent Deaton and collectively represented XRP holders from filing an amicus brief focused on the opinions of experts engaged by the SEC.

The SEC lawsuit filed against Ripple Labs in December 2020 focuses on the legal classification of the XRP token, with the SEC alleging that the San Francisco-based payments platform sold the asset without adequate authorization.


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