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Judge rejects XRP hodlers’ bid to join SEC against Ripple case as defendants

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There has been one other twist within the ongoing battle between distributed ledger know-how agency Ripple and the U.S. Securities and Exchange Commission (SEC).

On Monday, Oct. 4, U.S. District Judge Analisa Torres dominated that people holding the corporate’s XRP token can not act in Ripple’s ongoing lawsuit as defendants.

The dedication comes after various XRP token holders aimed to file “friends of the court” briefs which might enable them to join the case as defendants and assist Ripple in its claims that the token doesn’t violate securities legal guidelines.

Judge Torres asserted that permitting XRP holders to join the swimsuit would “compel the SEC to take an enforcement action against them,” in accordance to Law360. She added that it will additionally delay the case which Ripple and token holders have urged for a fast decision to.

However, the choose decided that tokenholders can take part as “amicus curiae” — a celebration that isn’t concerned within the litigation however is allowed by the court docket to advise or present data. Torres acknowledged:

“The court concludes that amici status strikes a proper balance between permitting movants to assert their interest in this case and allowing the parties to remain in control of the litigation.”

Counsel for Ripple, Andrew Ceresney, mentioned that they had been happy with the result for XRP holders that may now “share their meaningful perspectives with the court.”

In a motion to intervene filed in March, the XRP holders claimed that they stood to lose billions ought to the regulator win the case. It additionally questioned the SEC’s claimed motives of defending traders.

“Claiming to protect investors, the SEC is seeking $1.3 billion in alleged ill-gotten gains from the named defendants, but by alleging that today’s XRP may constitute unregistered securities, the SEC caused over $15 billion in losses for XRP holders,” the submitting mentioned.

Related: XRP purchasers back Ripple, arguing that it is not a security

In a blog post in September, Deaton wrote that it was unfair that Ethereum has a regulatory “free pass” for its preliminary coin providing (ICO) whereas Ripple is being penalized. The circulation of XRP has been tightly managed by the San-Francisco-based firm which nonetheless holds round 55% of the provision in escrow.

In an interview on Oct. 4, Ethereum co-founder Joseph Lubin hit again, siding with the regulator in stating that it had official claims against Ripple:

“[The SEC] may have legit arguments in the cases that are being discussed right now. I don’t believe the SEC is trying to squelch innovation.”