XRP community members would likely join the ongoing suit against Ripple and SEC as the group files a motion to ensure its intervention. Ripple has continually faced problems associated with the suit filed against it by the US Securities and Exchange Commission. During the suit’s first few months, XRPs had been the biggest hit as the cryptocurrency had lost a huge part of its value, and the loss affected most of its retailers. The community members hope to be a part of the suit as they believe that the regulator does not represent their interest. This is not surprising as SEC has a controversial relationship with crypto-related businesses, and many believe that the regulator’s laws lack clarity.
XRP group files motion to intervene
The group filed a memorandum, being its effort to become a party to the suit. The community filed the motion at the District Court for the Southern District of New York, explaining reasons why it wishes to intervene in the suit. It explained that the suit had affected many businesses, and this has led to money loss. SEC believes that XRP is a security token and that Ripple violated federal law by not registering the asset.
Ripple answered by opining that XRPs were not created as securities but to assist cross-border payments. The token is a known cross-border payment method, which assures fast settlement powered by blockchain technology.
The memorandum revealed some essential factors that the court could consider, following the other parties that would be negatively affected by the suit. The group believes that SEC’s interest is entirely different from the people’s interests, leading them to file the suit. A known lawyer who has been pushing the intervention motion is John Deaton, who currently represents about six XRP holders.
Interestingly, the motion filed explained that numerous businesses, investors, holders, and a group of other people that might be utilizing the asset would be negatively affected if the court’s judgment is unfavorable to XRP holders.
Group believes that Ripple doesn’t represent its interests
The group also opined that the defendant, Ripple, which is the fintech behind the XRPs, does not represent the holder’s interest. It said that Ripple could not be relied upon by the group due to the differing interests. In the memorandum, the community explained that the defendant has shown that it doesn’t represent its holder’s interests.
Ripple has seen a lot of progress in the suit against it by SEC, and sources revealed that the business was moving to dismiss the ongoing suit. The suit, which was filed since December 12, has negatively affected Ripple until recently.
XRP is currently one of the industry’s biggest winners, and the community sees it as a good sign, especially after its continuous falls in late December and early January. The court has granted Ripple some special procedures, such as redaction in email exchange, and to access SEC’s internal opinion about Bitcoin and Ethereum. The fintech has explained that the XRP is similar to BTC and ETH and should also be excluded from being seen as a security.