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XRP lawsuit update: In motion to intervene, XRP holders state SEC doesn’t represent their interests

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XRP lawsuit update: in motion to intervene, XRP holders state SEC doesn’t represent their interest

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Deaton Law Firm’s attorney John Deaton filed a motion to intervene on behalf of XRP holders in Ripple’s legal battle with the U.S Securities and Exchange Commission on April 19, 2021.

In the latest memorandum of law, Deaton argued in support of the motion. He stated,

“The SEC allegations are riddled with material misrepresentations about XRP Holders; their reliance on Ripple, their use of XRP and their independent development of the XRP ecosystem.

Deaton added,

“Defendants have also made it clear that they do not represent the interests of XRP Holders. Simply put, XRP Holders cannot rely on the Defendants’ efforts in this case….XRP Holders, therefore, seek to intervene in this enforcement action pursuant to Fed. R. Civ. P. 24.”

In the same document, Deaton also argued in favor of XRP holders, stating that the SEC has disputed the independent utility of XRP. This necessitated an intervention on behalf of XRP Holders to help “develop the Court’s understanding related to the current utility and development and technology behind XRP.”

He also reiterated that XRPL is completely independent of Ripple and its executives. He echoed that many of the current uses of XRP by XRP holders were performed without Ripple or its executives’ knowledge or awareness. 

The document also lined out the SEC’s lack of direction and clarity when it came to regulating digital assets. 

Finally, according to the same, the SEC knew from its third-party communications that market participants lacked clarity of the SEC’s position. The SEC nevertheless took no steps to advise the public of the SEC’s new and opposite interpretation.

By May 3, the U.S SEC will have to file its opposing papers. By May 17, Federal Judge Analisa Torres will take a decision on whether to grant the latest motion to intervene.

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Jibin Mathew George is Editor-in-Chief at AMBCrypto. A domain expert in International Relations (European Politics), he has always been a believer in the unlimited possibilities afforded by blockchain and by extension, cryptocurrencies. As someone who has been watching and writing about this space for over 5 years now, Jibin has closely tracked the emergence of cryptos and digital assets as a separate asset class in portfolios world over. A lawyer by training, he previously contributed to the News and Research desk of Diplomacy & Beyond Plus. Before his stint at D&B, he was Editor at ED Times. Jibin also takes a great interest in politics, especially the corresponding effect political decisions and fiscal policy have on the world of finance, with a special focus on cryptocurrencies.
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