376 Interactions, 2 today
The judge presiding over the SEC-Ripple case has rejected the assets holders’ request to appear as third-party claimants in the legal dispute. Judge Analisa Torres rejected the petition brought by John Deaton of Deaton Law Firm LL, an XRP hodler. Deaton claimed in a letter to Judge Torres that he represented 6,000 other XRP holders who had petitioned to join in the case.
Deaton argued at the time that this transition would enable the holders to better serve their interests “holders of XRP cannot objectively rely on Ripple’s efforts.”
On 14 March, Deaton further wrote:
It is not just Ripple’s current distribution of XRP that is at issue, but whether present-day XRP owned by XRP Holders are considered securities because most US exchanges have delisted and/or suspended XRP trading entirely, thereby causing the XRP held by XRP Holders untradeable and, thus, useless. The SEC had an opportunity to amend the Complaint and provide clarity to the markets but, instead, deferred that responsibility to this Honorable Court.
The judge admitted in the dismissal that the XRP Holders decided to interfere to “protect their considerable rights that would be significantly affected by the disposition of this action.” More specifically, the request was rejected “without prejudice,” implying that petitioners can file the motion again at a later date if XRP holders so desire. However, since the deadline is March 17, the prosecution will proceed without the holders’ participation.
Previously, Deaton claimed in the letter that the SEC supposedly stated that, “this Court was the exclusive forum” to hear their claims regarding the lawsuit. He had argued that since XRP investors “cannot rely” on Ripple to protect their interests, it apparently made the holders’ intervention “necessary.”