XRP litigation update: XRP holders say the SEC should not represent their rights in a motion to intervene.

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On April 19, 2021, Counsel John Deaton of Deaton Law Firm filed a motion to sue on behalf of XRP investors in Ripple’s legal dispute with the US Securities and Exchange Commission.

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.”

Deaton has argued in favour of XRP holders in the same paper, claiming that the SEC has questioned XRP’s independent usefulness. This necessitated an action on behalf of XRP holders to assist in “developing the Court’s understanding related to the current utility, development, and technology behind XRP.”

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He also mentioned that XRPL is entirely separate from Ripple and its executives. He reiterated that all of the new uses of XRP by XRP holders occurred without the understanding or awareness of Ripple or its executives.

The paper also highlighted the SEC’s lack of vision and transparency in managing digital properties.

Finally, according to the same, the SEC learned from its third-party contacts that market participants missed clarification of the SEC’s stance. Despite this, the SEC took no action to inform the public of the SEC’s fresh and opposing interpretation.

The US SEC must file its opposing papers by May 3. Federal Judge Analisa Torres will rule on whether to issue the new motion to interfere by May 17.

 

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