The legal battle between FinTech firm Ripple and the US Securities and Exchange Commission has taken a new turn.
In a number of events, the Ripple-SEC case appears to have become even more complicated. According to recent reports, more than 6,000 XRP owners have asked to be part of the San Francisco-based company’s lawsuit as third party defendants.
One such investor, John Deaton, wrote a letter to Judge Analisa Torres on Sunday, filing a motion for intervention. He claims to have filed the application on behalf of other XRP investors.
One section of the letter reads: “It’s not just about Ripple’s current distribution of XRP, but also whether or not today’s XRP owned by XRP holders will be considered securities as most US exchanges have completely delisted and / or suspended XRP trading, as a result of which the XRP held by XRP holders is not tradable and therefore useless. The SEC had an opportunity to amend the complaint and clarify the markets, but instead transferred that responsibility to this honorable court. “
The XRP hodler admits that the interests of XRP investors are not well represented, as Ripple stated that holders of the token shouldn’t put their hopes on the company. In his opinion, the company is mainly interested in distributing the token and gaining clarity about the status of XRP.
Deaton runs a website called Cryptolaw, on which he pointed out that the lawsuit resulted in total losses of $ 15 billion to token holders. He justified the decision to intervene as “necessary” because XRP owners could not rely on the company to prioritize their interests.
Elsewhere, Ripple has filed a motion forcing the SEC to submit documents [Ripple] pretends to be relevant to the case. The lawyers of the two Ripple executives [defendants] yesterday the court asked to force the regulator to release documents on bitcoin and ether, two of the widely accepted cryptocurrencies recognized as non-securities.
According to the application details, the “economic substance” of transactions with the XRP token does not differ significantly from that of Bitcoin and Ether. Ripple argues that the commission is “withholding potentially exculpatory evidence”. The company also wants the judge to force regulators to produce documents from ten custodians, including Jay Clayton, the outgoing SEC chairman.