SEC urges court to deny XRP holders’ motion

The U.S. Securities and Exchange Commission (SEC) filed a motion to deny the XRP holders’ petition against Ripple. The filing was submitted to the U.S. District Court for Rhode Island.

In January 2021, a group of investors demanded that the regulator amend the lawsuit against the California-based company and stop referring to the coin as a security. According to them, the SEC ‘deliberately and intentionally’ caused XRP holders ‘multibillion-dollar’ losses.

SEC filed a suit against Ripple

In the motion, the regulator stated that the petitioners had not provided a compelling basis to abandon the position it had taken.

“The authors of the document failed to show that trading platforms for digital assets would move the price or that XRP’s value would rise if the Commission amended its complaint,” the SEC said.

Against the backdrop of Ripple’s problems with U.S. authorities, some major companies stopped supporting the XRP token. Among them — Coinbase and OKCoin, Bitstamp, Kraken and Galaxy Digital.

The asset-management company Grayscale Investments announced the liquidation of its Ripple-based investment trust, and 21Shares excluded it from its exchange-traded products.

MoneyGram stopped using an XRP-based product. The California-based company was backed by another partner — the financial giant SBI Holdings.

In February 2021, the SEC filed an amended version of the suit, focusing on the responsibility of Ripple’s CEO Brad Garlinghouse and its co-founder Chris Larsen. The head of the company called the Commission’s actions “regulatory overreach“.

On March 5, Ripple won a case against the British investment firm Tetragon Financial Group.

Respondents SEC Motion to Dismiss US DisRI by ForkLog on Scribd

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