The ongoing battle between distributed laser technology firm Ripple and the US Securities and Exchange Commission (SEC) has taken another turn.
On Monday, Oct. October, U.S. District Judge Analisa Torres ruled that individuals holding the company’s XRP tokens could not act as defendants in Ripple’s ongoing lawsuit.
The decision comes after XRP token holders submitted a “friend of court” summary that would allow them to join the lawsuit as defendants and support Ripple’s claim that token securities do not violate the law.
Judge Torres asserted that allowing XRP holders to join the case would force the SEC to take effective action against them in accordance with Act 360. He added that it would also delay cases where Ripple and token holders have requested a speedy resolution.
However, the judge determined that tokenholders could participate as an “amicus curiae” – a party that is not involved in the litigation but allows the court to provide advice or information. Torres says:
“The court has concluded that Amisi’s position in this case strikes a fine balance between allowing the parties to assert their interests and allowing the parties to remain in control of the case.”
Ripple’s lawyer Andrew Ceresney said he was satisfied with the results of the XRP holders who now “can share their meaningful views with the court.”
In a motion of intervention filed in March, XRP holders claimed that they would lose billions if the regulator won the case. It has also called into question the SEC’s claim to protect investors.
“Claiming protection of investors, the SEC is claiming লাভ 1.3 billion in false profits from named defendants, but claiming that today’s XRP could form unregistered securities, the SEC has caused more than ১৫ 15 billion in damage to XRP holders,” the filing said. .
Related: XRP buyers return the ripple, arguing that it is not a security
In a blog post in September, Dayton wrote that it was unfair that Ethereum had a regulatory “free pass” for initial coin payments (ICOs) while Ripple was being punished. The introduction of XRP has been strictly regulated by San-Francisco-based companies that still hold about 55% of the supply in Escrow.
In an October interview, Etherium co-founder Joseph Lubin sided with the regulator, making a legitimate claim against Regal:
“[The SEC] The cases being discussed at the moment may have valid arguments. I don’t believe the SEC is trying to ruin innovation. ”