US Court Rejects SEC's Attempt to Block XRP Holders' Motion to Intervene in Ripple Lawsuit – Regulation Bitcoin News


US Court Rejects SEC's Attempt to Block XRP Holders' Motion to Intervene in Ripple Lawsuit

In the SEC v. Ripple lawsuit, the court has rejected the SEC’s attempt to block XRP holders’ Motion to Intervene and has set submission deadlines for the motion to be filed as well as for responses from the SEC and Ripple.

Judge Dismissed SEC’s Attempt to Stop XRP Holders From Intervening in Ripple Lawsuit

In the U.S. Securities and Exchange Commission (SEC) v. Ripple Labs case, the district court of the Southern District of New York “has reviewed the parties’ and proposed intervenors’ letters dated March 19 and 26, 2021,” according to the court document filed Monday.

The SEC filed a lawsuit against Ripple Labs Inc., CEO Brad Garlinghouse, and co-founder Christian Larsen in December, charging them with conducting a $1.3 billion unregistered XRP securities offering. On March 19, Deaton Law Firm wrote a letter to District Judge Analisa Torres on behalf of XRP holders, as proposed intervenors. It was signed by over 10,000 XRP holders at the time of filing. The SEC responded on March 26, attempting to convince Judge Torres to deny the Motion to Intervene.

The Monday court order, signed by Judge Torres, is in favor of XRP holders, stating:

The proposed intervenors’ request for leave to file a Motion to Intervene is granted.

The order further states that “the proposed investors shall file their Motion to Intervene” by April 19.

In addition, the SEC shall file its opposition papers and the defendants shall file their response papers, if any, by May 3. Lastly, the proposed intervenors shall file their reply to the SEC’s opposition papers and defendants’ response papers, and the SEC shall file a reply to the defendants’ response papers by May 17.

Deaton Law Firm confirmed on Twitter that the SEC is “defeated in [its] attempt to block XRP holders’ Motion to Intervene,” as Judge Torres has granted a request from its founder John Deaton “to submit Motion to Intervene on behalf of XRP holders.” Clarifying that “The judge has not granted the motion,” the firm emphasized:

She has rejected the SEC’s arguments that XRP holders be denied the opportunity to submit it.

Tags in this story
Brad Garlinghouse, court order, judge order, ripple lawsuit, sec defeated, sec lawsuit, SEC vs Ripple, security offering, xrp lawsuit, xrp securities

What do you think about this court order in favor of XRP holders? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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