The vast XRP community filed a motion as a means of intervention to the continuing court wars between blockchain payment firm Ripple Labs and the US Securities and Exchange Commission (SEC).
A Memorandum of Law was stipulated in the filed motion, which listed John Deaton, James Lamonte, and four others for intervention and the entire XRP holders. It also outlines relevant facts that aim to make the lawsuit look like a mere witch hunt.
The SEC lawsuit indicted Ripple’s CEO Brad Garlinghouse and Chris Larsen, the company’s co-founder, because of selling the cryptocurrency XRP without duly registering it as a security.
The interests of the XRP community
The filed Memorandum of Law emphasized that there are many government agencies that recognize XRP as a currency and that the interests of its community is not represented by the SEC and the defendants as well.
XRP developers, investors, and businesses that rely on the digital currency have been hindered by the SEC lawsuit that is also being blamed for XRP’s delisting from the top exchanges.
According to Blockchain.news, the filed motion stated that “many of those developers and individuals and small businesses have been slowed or halted due to the allegation that today’s XRP itself is an investment contract and thus a security.”
Irregularities of the showdown
With the court battle, Ripple Labs and the SEC have engaged in a showdown of their own, and neither is backing down.
But the fight is not without irregularities. One is the resort to gather information as alleged by the payments firm.
The SEC has until May 3 to respond to the request of Deaton and the company to intervene. There are, however, speculations that new Chairman Gary Gensler might have the authority to withdraw the lawsuit and end the court wars the two entities have been fighting.
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