Ripple XRP holders have finally gotten their request granted to Intervene in the ongoing lawsuit. As the case between the Securities and Exchange Commission (SEC) and RippleLabs continues. The Ripple community has been lamenting that no one is protecting its interests in the lawsuit.
In fact, nobody seemed to pay attention to those claims until now. A federal judge is now ready to accept the claims from Ripple holders.
Up to 6000 XRP token holders had asked for the right to serve as 3rd party defendants in the lawsuit earlier in March. Luckily, they’ve been granted permission to act in defense of Ripple Labs.
Ripple (XRP) and SEC Lawsuit
District Judge Anna Torres has given the interveners until the 19th of April to file the motion to intervene in the lawsuit. Also, there is another deadline in the middle of May for the filing of opposition and the responses by SEC and Ripple defendants. This was disclosed in a letter that Judge Torres filed on the 29th of March, 2021
The defendants were able to get a positive answer due to a letter that Ripple Labs lawyers filed on the 26th of March. The lawyers also represented the interests of Christian Larsen and Brad Garlinghouse. Both were Ripple Executives and defendants in the lawsuit.
According to the letter, the lawyers told Judge Torres that the individuals asking for the right to intervene have well-founded concerns. At least, they’re agitating over the fact that the SEC case is not clear at all. Moreover, these individuals are trying to protect the interest of thousands of XRP holders.
Defendants Accuse SEC of Conclusory Allegations
In the arguments made by the defendants against SEC. They’re insisting that the commission is working on what they tagged “Conclusory allegations”. This means that XRP, according to SEC, is a security, and that means that all the offers, transactions, or even sales of the coin should pass through the federal securities law regulatory requirements.
This same position also appeared in a letter that Deaton Law Firm filed on the 19th of March to support the token holders. In the letter, lawyers specified that the SEC is wrong to claim that every XRP is a security, which means from 2013 till 2021.
This implies that all the available XRP are unregistered, even the ones in the holder’s accounts. The lawyers went further to argue that XRP holders are being treated unjustly based on SEC’s allegations.
This is why XRP holders are asking for permission to serve as defendants. Thus the court will understand the magnanimity of the property interest at stake. Surely, there’s an adequate defense for the interests and rights of XRP holders.
Effects of SEC Lawsuit Against Ripple
Due to the ongoing lawsuit between SEC and Ripple Labs, the value of the crypto in circulation collapsed by $15 billion.
In response to the XRP holder’s appeal to intervene, SEC filed a letter to Judge Torres. The letter argues that the notion was unclear as the defendants did not specify the claims. Therefore they’ll be asserting and against whom they’ll direct it if the court permits them.
The commission further cited that Congress barred the coordination of claims that are made without their consent. As such, SEC maintains that the appeal doesn’t have a proper basis.