US District Judge Analisa Torres ruled on Monday that a group of individuals who own XRP can offer their “meaningful perspective” in the US Securities and Exchange Commission’s (SEC) case against Ripple, despite denying their motion to intervene as defendants.
XRP holders as amici curiae
— John E Deaton (@JohnEDeaton1) October 4, 2021
While denying the XRP holders’ bid to intervene as a class in the case, Judge Torres argued that the regulator would be required to take enforcement actions against each individual XRP holder if they were permitted to participate as defendants.
The regulator argued against allowing the token holders to act as amici, claiming that they are not neutral parties, but Judge Torres disagreed and ruled 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.”
“Movants may view XRP differently from Defendants and thus may stress different arguments, and so, even if intervention is unavailable, they will provide the Court with a meaningful perspective,” added Torres, clarifying that “in order to maintain the balance between parties and amici, the Court will not permit Movants, as amici, to offer evidence or present witnesses.”
XRP holders have always said that the SEC’s lawsuit is a direct attack on them. Now it's official. The Court’s ruling permits John Deaton to share his “meaningful perspective” to help the Court “reach a proper decision.” Yet another important (and positive) development. https://t.co/JXeyhlKABT
— Stuart Alderoty (@s_alderoty) October 4, 2021
De facto defendants
“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. Hence, the relevant question is who, exactly, is the SEC protecting by going after XRP,” read the memorandum in support of XRP holders’ motion to intervene in the case.
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