SEC v. Ripple: What's Next for XRP Holders? With new "friends of the court" status, what's next for XRP holders?

The continuing legal fight between Ripple Labs and the Securities and Exchange Commission of the United States has taken a new turn. U.S. District Judge Analisa Torres has granted XRP token holders the status of amici curiae, or "friend of the court," according to the most recent update in the case. Individuals who own the company's XRP coin cannot be named as defendants in the case, according to the court. However, they would be able to help the court in presenting legal problems related to the SEC v. Ripple case thanks to the aforementioned award.

Judge Torres recently denied a “motion to intervene as defendants” brought by John Deaton, an attorney representing a group of XRP investors. Holders who join the complaint, according to the court, will “compel the SEC to initiate enforcement action against them.” She went on to say that this would "unnecessarily prolong the lawsuit" much further.

Instead, Judge Torres decided that they may serve as court buddies. This implies that the court would authorize them to give advice or information but not engage in the lawsuit process. The judgment went on to say,

“The court finds that amici status strikes a fair balance between enabling movants to express their interests in this case and allowing the parties to maintain control of the litigation.”

Needless to say, the XRP community's response was overwhelmingly favorable. For example, James K. Filan emphasized the importance of this judgment by tweeting that XRP holders had filed a petition to intervene earlier in March. They argued at the time that they wanted to safeguard their interests because if the agency won the lawsuit, they would lose billions. Deaton's daughter, who owns XRP, also said that the token lost $15 billion in income after being delisted from major cryptocurrency exchanges.

However, Ethereum co-founder Joseph Lubin, in a 4 October interview, agreed with the regulatory body and its discriminatory handling of XRP. According to reports, he said,

“[The SEC] may have valid arguments in the instances that are now being debated. I don't think the SEC is attempting to stifle innovation.”

This was in reaction to a blog article by John Deaton. He has already expressed his dissatisfaction with Ripple's handling in contrast to Ethereum. Ethereum, according to the lawyer, received a "regulatory free pass" for its own ICO.

Taking to Twitter, he responded to the executive once again, saying,

“Are you serious?” I inquire. Hester Peirce, often known as Crypto Mom, is an SEC commissioner who has been vocal about the SEC's lack of transparency and its effect on innovation. However, @ethereum Do you think Joseph thinks the SEC is doing a good job? Joe needs a new public relations consultant.”

Share: