SEC tries to stop XRP holders from defending Ripple

The United States Securities and Exchange Commission (SEC) is attempting to block Ripple (XRP) holders from aiding in Ripple’s defense.

SEC is also trying to prohibit attorney John E. Deaton from any further participation in proceedings.

The regulator opposed the decision to recognize 1,746 XRP holders as “amici curiae” along with attorney John E. Deaton.

Amici (plural: amici curiae) means “friend of the court.”

Deaton has 3,252 affidavits signed by the token holders essentially stating that they are victims of the SEC’s lawsuit against Ripple as a result of lost profits.

Holders claim in the affidavits that they either did not assume legal responsibility for purchasing XRP, they bought the tokens for utilitarian purposes instead of investment purposes or they did not buy based on promises made by the company and its representatives.

However, in its objection to XRP holders, the commission claimed that they are attempting to operate outside of strictly legal issues.

The commission has cited alleged threats by Deaton against former SEC Chairman Jay Clayton as reasoning to dismiss him as amicus.

The XRP holders and Deaton as amici are required to submit a public reply to the SEC’s objection by July 25.

Ripple is a blockchain company that issues the XRP token. The SEC has alleged in an ongoing court case that started in 2020 that Ripple and its executives Brad Garlinghouse and Christian Larsen sold XRP as unregistered securities.

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