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- SEC denies XRP movants amicus curiae status in legal dispute
- Ripple to go public once legal dispute with SEC is over
- XRP holders are in a fix as the result may come out in two weeks
In a reply memorandum of law, the US Securities and Exchange Commission (SEC) has written out to the holders of XRP that they are partial in their dealings. The SEC has gone on record and informed the defendants that they inappropriately seek to expand issues in the proceedings of the court. The SEC’s enforcement action against Ripple and its current and former CEO’s has drawn flak among six of its investors. They claim that they have an equal right to be a part of the proceedings.
What does the preliminary statement say?
Movants have been told not to intervene in the session of the court through their unique perspective or information not present in the public records. The defendants, Ripple owners (past and present) have proposed that the movants participate in an amici curiae state and act as friends of defendants. The arguments of the movants are not applicable under the violations put out by the SEC.
If the movants are allowed to intervene, then the SEC will not stand a chance to discover new information or participate in related discovery. However the defendants are of the fact that the knowledge and experience possessed by the movants should be kept handy as they are amicable in one way or the other. The court believes that new information hence provided by the movants will change the nature of the case drastically as it would be evidentiary material.
The court citings are detailed and against the movants
The group of six movants cannot offer anything special in the court as that has already shown. They have to act as amicus curiae but can present evidence on three circumstances. The existence of a secondary market in XRP, the lack of connection between Ripple efforts and the failure and success of XRP and the use of the digital currency.
Many believe that XRP’s current status is a threat to security and its holders around the world have been threatened. Moreover the movants have claimed that they do not intend to change the current scheduling order of the court or any of its proceedings. The court ruled that the amicus curiae status cannot be granted as they are too partial in their dealings with customers and clients. The amicus status would be against the interest of the court and desired outcomes will not be achieved.
Ripple and SEC drama long but over
The SEC has denied the motion to intervene and the defendants appeal has not been withheld. It is not the first time that the SEC had an upper hand against Ripple. The SEC in December had filed a lawsuit against the firm alleging a fraud of $1.3 billion for unregistered securities offerings. Ripple is set to move the SEC court when it resumes again on May 21, 2021. The dispute is poised to end within two weeks. The scope of SEC’s jurisdiction over digital currencies and assets will also be out as precedence for future reference.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
