Holders of Ripple’s XRP token will be able to intervene in the legal battle between the company and the SEC
Holders of Ripple’s XRP token will be able to intervene in the legal battle between the company and the SEC, the District Judge ruled.
A U.S. district court judge has granted a request by XRP holders to file a motion to intervene in the SEC lawsuit against Ripple
Positive news for the blockchain-based payment processor Ripple, as District Judge Analisa Torres has approved XRP holders to intervene in the ongoing legal case against the Securities and Exchange Commission (SEC).
Over 6,000 holders of Ripple’s native token (XRP) have petitioned to participate in the impending legal battle between the company and the Commission.
John Deaton, an XRP investor and a representative of Deaton Law Firm LLC, filed the motion, claiming that the case would impact the token holders as well, not just the payment processor behind it.
The US court in New York, represented by District Judge Analisa Torres, approved Deaton to file the necessary request for submitting a motion to intervene. Even though the judge’s March 29 ruling does not offer clues on whether she ultimately would allow XRP holders to intervene, it opens the door for XRP holders to take the next legal steps to try to do so. XRP holders now have until April 19 to file a formal motion to intervene, according to the court, and the SEC and Ripple will have until May 3 to respond.
Interestingly, the Court’s approval comes after the SEC’s amended complaint. In it, the Commission said that if approved, it would be logic-bound to allow all investors and interested members of the public with differing viewpoints to intervene in the underlying actions. Additionally, the SEC asserted that the approval would create an avalanche of claims and near-certainty of undue delay, complexity, and confusion.
The judge’s decision is a rebuff to the U.S. Securities and Exchange Commission’s earlier move asking the court to deny the proposed intervention by XRP holders.
In its letter dated March 26 to Torres, whose court is part of the Southern District of New York, the SEC argued that:
“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.”
Ripple’s attorneys, on the other hand, had expressed that they had no objection to the intervention by XRP holders.
You can see the XRP price here.
Read more:
- In The Past 15 Days, Jed McCaleb, Who Cofounded Ripple Labs, Sent A Whopping 127 Million XRP To Be Sold
- Ripple Plans To Acquire A 40% Stake In Tranglo As Part Of Its Expansion Of Ripplenet’s On-Demand Liquidity In Southeast Asia