Things are still difficult for XRP, as the parent firm, Ripple, is still facing some charges due to the token sales. One of America’s most prominent regulators, the Securities and Exchange Commission, had accused Ripple’s executives of orchestrating the token sales of XRP, which the body believes violates federal laws. The parties have failed at different attempts to bring a settlement and have opted out of the court settlement.
The case might be over soon, and the digital asset space wishes Ripple would be given a fair trial, especially since the growth of XRP and its contribution to the development of cross-border payments. While prominent crypto exchanges have delisted the XRP tokens, XRP enthusiasts have shown their solidarity by being witnesses.
Judge denies XRP holders the opportunity to intervene
The preceding judge, Analisa Torres, who is currently handling the case between Ripple and SEC, has prevented the XRP enthusiasts from being defendants. XRP investors globally have been interested in the case and have shown various ways in solidarity with Ripple.
Now, the parties, who are more than 5000 XRP holders, plan to become part of the case with Deaton Law Firm’s help. Deaton has made steps to allow the group to be a party to the defense. Unfortunately, the preceding judge has denied their motion because of misrepresentation.
According to the third parties, they believe that the holders of the XRP tokens have not been represented in the court. However, the judicial officer refused the motion and has dismissed it without prejudice. This means that their denial to act as the third-party defendant can be refiled if the parties wish.
According to the filing, the parties informed SEC via a pre-motion letter, which creates an opportunity for a response from the watchdog. The court has informed SEC that it should reply to the motion within three days, but the latter asked for an extension. The new date for the response is till March 22, meaning the regulatory has to respond within that period.
SEC is yet to respond to the XRP army’s pre-motion letter
For now, no one is sure whether the extension would allow the third party to be defendants in the case, but what is known is that the XRP holders are determined to help Ripple executives. The law firm representing the holders had explained that it intervened to help the unrepresented parties show how the suit has affected them. The law firm filed the motion on March 14, creating enough opportunity for a response before a court appearance.
The filing explained how exchanges in the US had delisted the token and has prevented holders from trading or using the asset. It opined that the regulator should have given enough clarification for the digital asset industry.
There have been some controversies regarding the lack of regulatory clarity in the regulations that the SEC enforces, and this is what the lawyer is trying to draw attention to. The filer, who heads the law firm, said that the holders were not adequately represented and that holders have been significantly affected by the removal on exchanges.