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SEC Wants Court To Block The Participation Of XRP Holders Into The Lawsuit

The story of the current legal war between Ripple and the United States SEC is one that nearly everyone in the cryptocurrency community is familiar with at this point. There have been plenty of developments since the time the lawsuit was filed by the SEC last year. The SEC is now accusing the XRP holders themselves of organizing some kind of ‘crusade’ against it and the government.

This accusation had resulted from XRP holders, investors, and Ripple supporters and sympathizers constantly trying to insert themselves into the legal dispute in order to tilt the case in Ripple’s favor. The SEC wanted to remind everyone that its issue is with Ripple itself and not necessarily with the individual investors. Still, this has not stopped the investors from doing their best to actively get involved.

‘Investors are getting out of hand,’ says the SEC

The SEC remains adamant that if the interference from the investors persists, then it will have no choice but to take action against them. Furthermore, it had been made known that private claims such as these are usually locked by way of sovereign immunity. This was an argument which the SEC had used in order to hopefully explain its dismissal of the writ of mandamus petition that had been previously and unsuccessfully filed by the investors.

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Moreover, the SEC has maintained that the investors will not be eligible to garner any kind of relief from various exchanges which may have ceased trading in XRP or might have even had the token be delisted as these exchanges have little to do with the lawsuit itself. 

Case still ongoing

As the investors are barred from actually interfering in the case itself, not much has actually changed that would alter the trajectory of the lawsuit. The SEC claims that the investors have really just copied different complaints that Ripple had made in the past.

Ripple, on the other hand, actually wants its investors and supporters to keep pushing for intervention in an attempt to gain increased public support. While on the other hand, the SEC has stated that the abovementioned investors’ interests are only being ‘adequately represented’ through Ripple.

What is interesting to note, however, is the fact that in its very own response, the DLT (distributed ledger technology) provider had stated that investors should have the ability to intervene should there be a sound argument for them having Ripple’s and XRP’s best interests at heart.

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MubaShar Nawaz (United Arab Emirates)

MubaShar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

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