The recent tug-o-war between the US Securities and Exchange Commission (SEC) and Ripple Labs has been the center of attention for all crypto-enthusiasts. For many, it is simply a case study for the 6000 asset holders. A delegate of the XRP traders in the USA recently approached the court with a petition to participate in third-party defendants’ capacity.
However, the motion has been denied by the preceding judge on the case, Analisa Torres. The petition was submitted by John Deaton, Deaton Lawfirm LL., alongside major intervenors James Lamonte, Mitchell Mckenna, Kristiana Warner, and some other XRP holders. According to this petition’s contents, the purpose of this intervention is to safeguard the interest of the XRP holders. In a verbal statement, Deaton explained that SEC had not availed the opportunity to confirm the status of XRP as security which had put the 6000 XRP holders in jeopardy.
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The petition of XRP holders is denied by the court due to the possible bias of stakeholders. The good news is that the motion to deny has been marked without prejudice which means that XRP holders can submit another similar petition at a later date. The Ripple executives that are under fire of SEC Brad Garlinghouse and Chris Larson are making splashes on their part as well. Garlinghouse and Larson filed a motion to dismiss the case a few days ago.
SEC Trial Lawyer Jorge G. Tenerio submitted a response letter against this, pointing out that such tactics from Ripple executives are legally improper. Tenerio explains that the Ripple CEO has illegally traded unregistered securities to make a profit of $150 million despite being aware of its legal status. He further added that even if Ripple’s defenses are entertained by the court, it would still not be enough to dismiss the misconduct of the Ripple executives.
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Meanwhile, Ripple CEO Garlinghouse is certain that XRP would continue to trade even if Ripple liquidates. In the aftermath of the SEC case, several US exchanges have started to delist XRP from their platforms. Jesse Powell-Kraken CEO commented XRP to acquire the status of huge asymmetrical risk. The Ripple chief is certain that since XRP is a security, its requisition would allow the holders to have a stake in the company.
As of now, XRP is trading on 200 different exchanges based in Japan, Switzerland, and Singapore, among other Asian countries. However, the intervention of the SEC has almost deteriorated the company’s operations in the USA. Thus far, the petitions and motions to dismiss have been either dismissed by the court or flagged as insufficient to change the course of the case. There are some speculations that the appointment of new SEC director Gary Gensler may turn the tides on this matter.