SEC Vs Ripple Legal Wrangling Is Turning Uglier, Asks Revoking “Amici Status” Of XRP Holders’

SEC Vs Ripple legal wrangling is turning uglier day by day. The SEC or the U.S. Securities and Exchange Commission is trying its best to keep XRP investors out of the Ripple suit, in a desperate attempt has asked the judge to revoke the amici status terming it as a threat against their expert.

SEC Vs Ripple-SEC Charges XRP Lawyer Of Intimidation

SEC has asked Judge Torres to revoke the granted amici status to XRP holders. It has also asked the Judge to remove John Deaton from the case.

Among the allegations which SEC has leveled against Deaton was he tried to butt in into the lawsuit. Deaton is also alleged to have sought a writ of mandamus in another court on his own behalf. The SEC said that the movants were XRP investors who allege that this case has dampened their profits from the token. The SEC also highlighted that the lawyer’s Twitter feed and public statement.

It is interesting to note that in October 2021, the court denied Movant’s motion to intervene and granted Movant’s amici status. This led to a need to seek the court’s leave to file an amicus brief. However by disallowing the intervention it was realized that there will be delay or prejudice the intercession of the rights of both parties.

The SEC has put forth five objections as a reason to disallow the motion. The main objection was that the movants did not give any clarifications on legal issues. Its arguments were solely based upon 3,252 form affidavits from XRP token holders.

SEC Vs Ripple-Deaton Terms SEC Arguments As Nonsense Argument

This is the same nonsense argument the SEC made to Judge Netburn when she said according to their theory every person in the world selling XRP is violating Section 5. Section 4 exemptions only apply if XRP is a security. So, by definition, the SEC IS arguing XRP is a security.

— John E Deaton (207K Followers Beware Imposters) (@JohnEDeaton1) July 20, 2022

Terming the latest arguments by the SEC in the SEC Vs Ripple case as Nonsense Argument with Judge Netburn, Deaton said that it implied that every individual selling XRP has violated Section 5 and, the exclusion only applies if XRP is a security. Deaton further reasoned that any holder who has intent to sell XRP will be considered an “issuer” and exchanges would not relist XRP if it is termed as a security.