SEC Moves To Prevent XRP Holders From Participating In The Ripple Lawsuit

The United States Securities and Exchange Commission (SEC) has told the court that it’s planning to file an objection to the amici request made on behalf of a group of individuals who own the XRP token. The agency is responding to the fact that Rhode Island attorney and XRP enthusiast John Deaton recently asked the court for permission to represent 67,000 holders.

SEC Asks For Another Deadline Extension

Last year, attorney John Deaton filed a petition to intervene in the SEC lawsuit against Ripple. Deaton’s request was denied, but the court granted amici status to six XRP holders. This means they would be involved in the case as “friends of the court” and they would file briefs approved in advance by the presiding judge.

Earlier this month, Deaton requested the court to file a brief on behalf of other actual XRP investors who have been hurt by the SEC action. The move was a direct response to the SEC bringing in expert witness Patrick B. Doody to testify on what XRP holders were thinking when they purchased the digital asset. In other words, Ripple is attempting to strike the witness testimony en masse as his opinion has no credible scientific basis.

Now the SEC is requesting District Judge Analisa Torres for an extension of time until June 7 to file its objection to the amicus request letter in a Daubert challenge relating to the expert opinion of Doody. The securities watchdog cites the upcoming holiday and other briefing deadlines as the reasons for asking for an extension.

Defendants and counsel for amici curiae have no objection to the extension request, which suggests that the judge will most likely grant it. 

What’s Taking So Long. Is The Delay Really Necessary?

Unless you’ve been living under a rock, you have seen the SEC being accused of purposefully slow-rolling the process. Ripple’s general counsel Stuart Alderoty earlier noted that the commission was playing a delay card, instead of moving swiftly to end the case once and for all.

Nonetheless, Ripple and the court are working round the clock to end the legal battle as soon as possible, Alderoty posited. However, he believes the lawsuit won’t conclude until 2023 at the earliest.

The stakes are high this year as the regulation of the cryptocurrency industry is now a top agenda in Washington, D.C. after President Joe Biden signed a crypto executive order. According to the top Ripple lawyer, the future of the sector is on the line.

If Ripple wins, it would compel the SEC to ditch its hostile stance toward crypto. If the agency wins, however, it would definitely open the door to a plethora of new litigation against other crypto-focused firms.

Meanwhile, it’s business as usual for Ripple despite the procedural tussles with the SEC. The company remains the most popular blockchain-based service in the segment of interbank transactions and continues to spread its tentacles far and wide.

XRP is down 0.71% over the last 24 hours, trading at $0.405 at press time, according to CoinMarketCap data.