The case being raised by XRP holders to present evidence is allegedly being blocked by the U.S. Securities and Exchange Commission (SEC) using “red herrings, personal attacks, and irrelevant case law to distract the court from XRP holders’ meritorious request for intervention.”
In a recently submitted memorandum of law in reply to Plaintiff, Securities and Exchange Commission’s opposition of Proposed Intervenors’ Motion to Intervene, XRP holders said that the existing parties do not adequately represent their interest.
The SEC has been in an ongoing battle with Ripple Labs since last December. Announcing on December 22 that they had filed an action against Ripple Labs and two of its executives, Brad Garlinghouse and Chris Larsen. This filing alleged that Ripple had conducted an unregistered securities offering of $1.3 billion.
Ripple denies these claims on the basis that their tokens, XRP, are a cryptocurrency and not an investment contract. This case has not gone the way of the SEC thus far, with Ripple winning several crucial battles since the filing last Christmas.
Now, XRP holders claim that they should be allowed to speak for themselves:
“XRP Holders do not seek to broaden the scope of the SEC’s claims but rather protect their interests and provide the Court with critical information necessary for the fair disposition of this case. If intervention is granted, there will be no delay in the proceedings or adjudication of this case.”
They further say that “intervention will provide this Court with a more complete picture of the issues presented and contribute to a just and equitable adjudication of all claims and defenses.”
Case so far
Ripple’s CEO Garlinghouse has slammed the SEC on several occasions since they first filed against Ripple. He has gone on to point out that the SEC is the only regulatory watchdog in the developed world to deem XRP a security.
While the case has gone in Ripple’s favor by enlarge, the initial lawsuit had a disastrous effect on the company. The price of XRP fell more than 70% last December and many exchanges delisted XRP. However, the token has recovered to new highs since and some shrewd appointments, such as Rosie Rios, former U.S. Treasurer, have seen faith restored in Ripple Labs.
Latest case by the SEC
In their latest filing for the objection for third party defendants, SEC lawyers claimed:
“Seeking to inject themselves as ‘third-party defendants’ in this action, Movants would act as ‘friends’ of Defendants, not true ‘friends of the court,’ if permitted to participate as amici. And Movants’ arguments are not relevant to (and would improperly expand) the violations charged by the SEC in this action.”
With the U.S. government officials suggested permitting third-party defendants to intervene would open the door to intervention by even more XRP investors. This ongoing battle is further evidence of the SEC’s complex relationship with cryptocurrency.
The XRP token is a digital asset created specifically for financial institutions and payment providers. Like the SWIFT payments system, it works as a payment settlement and remittance system where transactions are adopted by a network of servers.
Converse to the function of bitcoin (BTC) as an alternative to fiat currencies, XRP tokens are used by the Ripple payment system as a cheaper and speeder network than bitcoin or traditional payments systems.