The XRP community has filed a new motion to intervene in the ongoing court duel between blockchain payments firm Ripple Labs Inc and the United States Securities and Exchange (SEC).
The motion contained in a Memorandum of Law which lists Jordan Deaton, James Lamonte, four other proposed intervenors, and the entire XRP holders, outlined a series of relevant facts that made the lawsuit appear as a witchhunt.
Neither Ripple Nor the SEC is Acting in Favor of the XRP Community
The SEC launched the lawsuit alleging that XRP is a security, indicting Brad Garlinghouse, Ripple’s CEO, and Chris Larsen, the company’s co-founder for selling the cryptocurrency without duly registering it as equity.
While the ensuing legal battle has opened up a lot of irregularities on the part of the SEC which favors the blockchain firm, the memorandum of law filed pointed out that several government agencies recognize XRP as a currency and that neither the SEC nor the defendants are representing the interests of the XRP community.
The damning lawsuit has been cited as a stumbling block for XRP developers, investors, and businesses that rely on it due to its delisting from the top exchanges.
“Many of those developers and individuals and small businesses have been slowed or halted due to the allegation that today’s XRP itself is an investment contract and thus a security,” the filing reads, adding that the intervenors are ready to prove that XRP has “the greatest utility of all cryptocurrencies.”
The ongoing Ripple-SEC showdown has been met with a lot of irregularities such as the undue resort to gather information as alleged by the blockchain payments firm. While the SEC has until May 3 to respond to this request by Deaton and co to intervene, pending a ruling by Federal Judge Analisa Torres on May 17th, there are speculations in the cryptocurrency ecosystem that new Chairman Gary Gensler may withdraw the lawsuit.
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