A U.S. federal district court rejected the U.S. Securities and Exchange Commission’s request to cancel the “amici curiae” or “friends of the court” status granted to holders of XRP on Tuesday.
In a letter addressed to the judge last week, the SEC demanded that the status of amici given to the opposition be removed.
The SEC filed a lawsuit against Ripple in December 2020, saying that the company had offered securities that were not registered as their native currency XRP is registered as a security. Ripple has repeatedly denied this.
The SEC also demanded that John Deaton, an attorney representing XRP holders, be banned from further involvement in the proceeding.
Deaton posted on Twitter, “The #XRPCommunity needs to continue to applaud and respect two of the judges assigned for this particular case. Judge Netburn has been impartial and fair with both sides throughout the discovery. Justice Torres’ ruling is incredibly fair (even though the judge technically denied my initial motion). ).”
On Wednesday this week, the SEC objected to the ruling of July 12 that dismissed the SEC’s appeal to the security of the speeches of former director William Hinman that Ripple asserts can prove XRP is not an investment.
In the ruling of July 12 in the July 12 ruling, the judge criticized the SEC for its “hypocrisy” and for unnecessarily adding to this Ripple case.
SEC gets the right to block necessary document handover for Ripple during XRP lawsuit
A federal judge has granted the U.S. Securities and Exchange Commission (SEC) until February. 17 to contest her earlier decision to give the defendant Ripple Labs certain government documents from the agency’s lawsuit that claims it is a fraudulent XRP token is not registered as a security.
Ripple and XRP, the investors, first believed that they were winning a legal dispute following U.S. Magistrate Judge Sarah Netburn. On January 13, she required the SEC to release the documents, including notes from confidential SEC meetings with third-party parties on Ethereum and the final draft of the controversial 2018 speech delivered by then-SEC director William Hinman that declared Bitcoin and Ether were not securities.
However, the SEC has resisted by requesting a more extended period to defend against the disclosure requirement, and Netburn has now given the commission up to four weeks to argue.
SEC filed a lawsuit against Ripple Labs and two of its top corporate executives back in December 2020, believing that the selling of XRP was unregistered security offering worth more than US$1.38 billion.
In its defense, San Francisco-based payment technology firm is arguing that the SEC did not give “fair notice” that it would treat the XRP token differently than Bitcoin or Ether.
Since the U.S. and many countries worldwide are still working on cryptocurrency and blockchain technology regulations, the SEC has filed a lawsuit. Ripple’s case is closely monitored because of its potential to legally define XRP and other cryptocurrencies.