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SEC blocks XRP traders from helping Ripple

SEC
TL;DR Breakdown
  • SEC set to block XRP traders from helping Ripple
  • XRP traders lament the loss of profits
  • Deaton questions the SEC’s use of the law

The SEC has submitted a petition to the court to block any attempt to testify by XRP holders. The lawsuit between the agency and Ripple has been proceeding, albeit under less scrutiny by the media. However, in a new twist, the commission has prayed the court to cross out XRP holders and lawyer John Deaton from interfering with the case.

XRP holders lament the loss of profits

In a document submitted to the court by the agency, it prayed the court not to grant over 1,000 holders of the token and Deaton as amici curiae. The word is generally interpreted as friends of the court, meaning those under the category can assist in any case. In this context, the XRP holders and the attorney can provide detailed assistance to the court regarding essential information and insight.

Notably, the information the parties provide to the court might help Ripple in its lawsuit. In an affidavit that Deaton says he holds, more than 3,000 holders of XRP mentioned that they had lost profits due to the protracted lawsuit between the company and the US SEC. In the affidavit, most traders mentioned that they intended to use the tokens for other utilities instead of investing.

Deaton questions the SEC’s use of law

The new document claims that the traders are trying to move outside of the legal framework. The agency has also claimed that the former head of the body endured threats from Deaton during his time in office. According to the evidence made available, Deaton was said to have claimed that he would slap the former boss. With the traders and the attorney still assuming their amici status, they would need to tackle the objection officially.

Meanwhile, there have been claims that the agency has not been consistent in its usage of the law so far. Deaton noted some days back that the XRP in circulation are still being sold and bought. He mentioned that the defendants are still allowed to sell the tokens in their possession. Should the outcome of the case swing against Ripple, other tokens created in the like image with XRP would face the wrath of the law.

Owotunse Adebayo

Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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