US SEC Tries To Block XRP Holders From Helping In Ripple’s Defense

The United States-based Securities and Exchange Commission (SEC) tries to restrict the holders of Ripple (XRP) from assisting in the defense of Ripple, and the attorney named John E. Deaton has been prohibited by it from any additional contribution to such proceedings.

SEC Confronts the “Amici Curiae” Status Given by Ripple to XRP Holders

On Tuesday, in its formal objection, the regulator confronted the move to provide the status of “amici curiae” to 1,746 holders of XRP along with John E. Deaton. The meaning of amici is “court’s friend.” This term refers to a person or institution that is excluded from a legal case but has the permission to provide information, insights, or expertise to help a court, in the defense of Ripple.

There are up to 3,252 affidavits in Deaton’s possession that are signed on the behalf of the holders of the token who are labeled as being victimized by the SEC via the legal case against Ripple Labs as they lost huge profits. Holders assert in the respective affidavits that they just purchase XRP tokens to accomplish utilitarian purposes rather than investment purposes without being compelled by the promises of the representatives as well as the promises of the firm.

Nonetheless, while objecting to the token’s holders, it was asserted by the commission that they intend to run external to the stringently legal matters. Apart from this, the commission has referred to the supposed threats that Deaton made against Jay Clayton (the former chairman of the SEC) as the reason why he should be excluded from amici curiae.

SEC Accuses John E. Deaton of Threatening SEC’s Ex-Chairman

A redacted latter of 7th June was also provided by the SEC to Judge Torres including the reference to a YouTube video where Deaton spoke that he might require reaching and slapping the sacrilege out of the ex-chairman of the SEC. As amici, Deaton, and the XRP holders need to file an open reply to the objection of the SEC by the 25th of July.

Ripple is considered to be a blockchain firm that releases XRP tokens. It has been accused by the U.S. Securities Regulator in the ongoing legal case –commencing a couple of years back – that Ripple Labs as well as its executives Christian Larsen and Garlinghouse sold the local token in the form of unregistered securities.

In the meantime, Deaton elaborated in a Twitter thread on Tuesday that if the securities regulator truly considered XRP to be a security, an injunction should have been submitted by it against Ripple along with a cease-and-desist directive against Jed McCaleb and the two executives from selling the tokens in their possession.

All trademarks, logos, and images displayed on this site belong to their respective owners and have been utilized under the Fair Use Act. The materials on this site should not be interpreted as financial advice. When we incorporate content from other sites, we ensure each author receives proper attribution by providing a link to the original content. This site might maintain financial affiliations with a selection of the brands and firms mentioned herein. As a result, we may receive compensation if our readers opt to click on these links within our content and subsequently register for the products or services on offer. However, we neither represent nor endorse these services, brands, or companies. Therefore, any disputes that may arise with the mentioned brands or companies need to be directly addressed with the respective parties involved. We urge our readers to exercise their own judgement when clicking on links within our content and ultimately signing up for any products or services. The responsibility lies solely with them. Please read our full disclaimer and terms of use policy here.

Leave a Reply

Your email address will not be published. Required fields are marked *