SEC Cites These Reasons To Revoke XRP Holders’ “Amici Status”

SEC Cites These Reasons To Revoke XRP Holders’ “Amici Status”

The U.S. Securities and Exchange Commission (SEC) has been trying hard to keep XRP holders out of the Ripple lawsuit. To hold its ground, the watchdog asked the judge to revoke the amici status citing a threat against their expert.

SEC frames allegation against XRP lawyer

Attorney James Filan shared the heavily redacted letter filed by the SEC. It requested that Judge Torres to revoke the granted amici status to XRP holders. The letter also mentioned restricting John Deaton from participation in the case.

According to the SEC, Deaton tried to jump into the lawsuit including seeking a writ of mandamus in another court on his own behalf. The commission highlighted that the lawyer’s Twitter feed and public statement, movants are XRP investors who believe that this case has dampened their profits from the token.

It mentioned that, back in October 2021, the court denied Movant’s motion to intervene and granted Movant’s amici status. This required them to seek the court’s leave to file an amicus brief. However, in denying the intervention, it was concluded that this will delay or prejudice the adjudication of the rights of both parties.

The watchdog proposed five reasons to deny the motion. One of them says that Movants do not propose briefings on legal issues. Instead, they are presenting arguments based on 3,252 form affidavits from XRP token holders.

Deaton slams US regulator

Reacting to the SEC’s filing, John Deaton said that the commission made the same nonsense argument with Judge Netburn. As per their theory, every individual selling XRP has violated Section 5. However, the exemptions only apply if XRP is a security.

He added that any person who has an intent to sell XRP can be considered an “issuer”. That’s why exchanges would not relist XRP if it is termed as a security, Deaton added that this is a sum zero game.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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