SEC deems XRP holders extremely biased

The U.S. Securities and Exchange Commission (SEC) has filed yet another motion opposing XRP token holders’ participation in the Ripple proceedings. The regulator described them as “extremely biased”.

According to the SEC, investors cannot join the case as amici curiae [друг суда]. The agency argues they would not provide the court with additional information, and their interest in the outcome would prevent objectivity.

The regulator also noted that the investors’ representative, founder of the Deaton Law Firm, John Deaton, has behaved inappropriately:

“The applicant’s counsel uses foul language and references physical violence, publicly attacking the SEC and its staff.”

In a responsive filing, Deaton stated that XRP holders have met the conditions necessary to participate in the proceedings. According to him, the outcome of the case would affect investors’ financial well-being, and their rights are not adequately represented.

“The SEC’s motion against XRP holders’ participation in the proceedings is rife with tricks, personal attacks and irrelevant precedents. It is an attempt to distract the court from the petitioners’ request,” added Deaton.

The attorney likewise rejects the accusations. He noted that he has been portrayed as a “crazy crusader spreading conspiracy theories”.

In December 2020, the SEC charged Ripple and its top executives with unregistered sale of securities under the guise of XRP tokens for $1.3 billion. The agency later amended the complaint, focusing on the actions of Brad Garlinghouse and Chris Larsen.

In March 2021, the regulator sought to block the XRP holders’ motion to participate in the proceedings. Later, the Southern District of New York court supported the investors.

Earlier in May, the SEC said Ripple supporters had begun a “crusade” against the agency.

gov.uscourts.nysd.551082.189.0 by ForkLog on Scribd

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