SEC v. Ripple: XRP holders declare victory as judge grants motion to intervene

  • XRP holders can now file a motion to intervene in the ongoing case between the Securities & Exchange Commission and Ripple Labs.
  • According to Judge Analisa Torres's ruling, the motion to intervene must be filed no later than April 19.
  • The SEC will then be able to file its opposition letters.

XRP holders are now claiming victory as attorney John Deaton has been allowed to file a motion to intervene in the ongoing case between the Securities & Exchange Commission (SEC) and Ripple Labs.

Permission to file a motion to intervene 

According to the court order, Deaton was granted permission to file a motion to intervene in the case on behalf of XRP holders by Judge Analisa Torres. A motion to intervene must be filed no later than April 19, according to the ruling by Judge Torres. The SEC will then be able to file its opposition papers by May 3. The court order stated:

By May 17, 2021, the proposed intervenors shall file their reply to Plaintiff’s opposition papers and Defendants’ response papers, if any, and Plaintiff shall file a reply to Defendants’ response papers if any.

XRP holders previously claimed that their interests are not being adequately represented in the SEC's ongoing case against Ripple Labs and have sought to intervene with an initial filing. However, Deaton’s letter, initially representing 6,000 XRP holders to intervene in the lawsuit, was denied in mid-March.

Attorney Deaton did not give up and refiled the motion, representing 10,000 XRP holders the second time. An XRP holder himself, Deaton noted that the SEC’s action has resulted in the decline of the cryptocurrency’s value by over $15 billion.

The SEC urged the court on March 26 to prevent XRP holders from intervening in the case. The securities regulator put forward the argument that allowing XRP holders to intervene in the case would cause an “avalanche” of claims, as well as “complexity and confusion.”

Setting the record straight

The SEC’s vague claims against Ripple have rather ignited a remark made by one of the agency’s attorneys, indirectly indicating that cryptocurrency exchanges could relist XRP without violating any laws.

While urging the court to deny the motion to intervene, the SEC stated that reinstating “speculative trading” of XRP at crypto exchanges could play into Deaton’s intention of doubling the price of the digital asset. The regulatory agency cited a previous FXStreet article, saying:

As Movant Deaton has stated elsewhere, the purpose of re-listing appears to be so that XRP’s price could double.

Stating that he does not talk about the XRP price, Deaton clarified that SEC attorney Tenreiro is “clearly trying to make me look bad by claiming that my motivation in seeking to intervene is for profit-taking.”

Deaton only commented on the likelihood of whether the SEC would give the green light for exchanges to relist XRP, especially since its price could double, enabling Ripple Labs to have twice the money to go forward with the case. 

The SEC’s letter to Judge Torres objecting to the motion to intervene is one of the most misleading letters he has ever read, he added.

Attorney Deaton plans to dispute the SEC’s argument that XRP does not have any utility by gathering businesses, developers and entities that use XRP operationally. 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Solana price eyes a return to $120 as confidence in SOL fades

Solana price continues to face some strong technically and fundamentally bearish scenarios. In addition, concerns about Solana’s network stability and scalability remain. Those concerns continue to weigh in on the bearish price action ahead.

More Solana news

MATIC on the march to $3 but must hold this support zone or face strong selling pressure

MATIC price action has fallen below the rising wedge for the second time in January; the first occurrence was on January 8. The Kijun-Sen is the final support zone, and if it fails, MATIC could drop 20%. The recent fundamentals are bullish.

More Polygon news

Top 3 Price Prediction: Crypto market seems ready to rally

Bitcoin price continues to sit on top of the neckline of a head-and-shoulders pattern, generating anxiety amongst bulls and bears alike. Ethereum price is testing the daily Tenkan-Sen as a support zone that could turn into a higher low.

More Bitcoin news

Dogecoin liquidity deepens as DOGE goes live on Thorchain

Thorchain announced earlier today that the Dogecoin liquidity pool is live on the decentralized liquidity network. As on-chain activity would increase, the deep liquidity fuels a bullish narrative for Dogecoin price. 

More Dogecoin News

BTC eyes retest of $50,000

Bitcoin price shows a resurgence of retail interest as it bounced off a crucial psychological level. The recent uptrend is preparing a base on a short-term time frame so BTC can kick-start a larger leg-up. Interestingly, on-chain metrics are lining up with the bullish outlook portrayed from a technical perspective. An uptrend now seems inevitable for BTC and, therefore, the larger ecosystem.

Read full analysis