Tuesday, April 13, 2021

XRP holders allowed to file their motion to intervene in the SEC lawsuit.

The Takeaway:

A US court has granted a motion by XRP holders to intervene in a lawsuit against Ripple Labs by the U.S. Securities and Exchange Commission (SEC).

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A federal judge in the United States has granted a motion by XRP holders to intervene in a lawsuit against Ripple Labs by the U.S. Securities and Exchange Commission (SEC). The court gave the token holders until April 19 to submit their motion to intervene in the high-profile case involving top Ripple executives, including CEO Brad Garlinghouse. 

 

XRP holders have until April 19 to file the motion. 

“The Court has reviewed the parties’ and proposed intervenors’ letters […]. Accordingly, the proposed intervenors’ request for leave to file a motion to intervene is granted,” Judge Analisa Torres of the Southern District of New York in a letter filed on March 29. XRP holders have until April 19 to file their motion to intervene. Plaintiffs have two weeks—or until May 3—to file their papers opposing the move. If the investors are to file a response to the plaintiffs’ opposition papers, they must do so by May 17. Judge Torres had initially rejected the XRP holders’ motion to intervene.

 

The SEC has sued the company for selling XRP. 

XRP holders filed their motion last month, seeking to intervene as third-party defendants in the SEC lawsuit against Ripple Labs and its executives. The regulator has sued the company for selling XRP, which it considers security. The lawsuit was filed in December 2020 by by the SEC which at the time was led by Jay Clayton. Clayton has since left his post at the SEC, but the commission’s new leadership has continued to pursue Ripple Labs. The motion to intervene was filed by Deaton Law Firm on behalf of 6,000 XRP holders. The law firm argued that with the SEC claiming all XRP tokens are securities, it was implying that XRP holders owned unregistered security. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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