The US Securities and Exchange Commission (SEC) attempted to prevent XRP holders from involving in the Ripple lawsuit and stated that it hasn’t charged any Ripple market investor fees.
SEC says XRP Investors will Force It Enforce Action Against Them
Against the request of investors to intervene, SEC has pointed out that the Ripple investors will force them to take enforcement measures against them. This is a decision of the agency itself:
“Movants are essentially seeking to compel the SEC to bring an enforcement action against individual secondary market XRP investors.”
The regulator added that such private claims are prohibited by sovereign immunity and that the argument was originally a motion to reject an investor’s unauthorized petition in their motion.
In addition, the SEC alleged that since the investors were not a party to the lawsuit, the investors could not get any relief from exchanges that suspended XRP trading or delisted the token.
The Regulators Feels Investors Have Nothing new to Bring
The SEC alleged that XRP investors actually did not bring any new merit to the case. Instead, they copied what Ripple had already produced.
The investors submitted a reorganized list of statements that focused on the regulatory status of XRP, its alleged uses other issues that existing parties are “actively” charging.
In addition, the SEC pointed out that XRP investors are trying to launch a “crusader” against government agencies to expose their alleged corruption. This also means that John Deaton, the attorney in charge of this work, tried to increase his influence on Twitter:
“Between February 28 and March 14, 2021, Deaton—noting that he was increasingly “popular” on Twitter for his efforts—pivoted from a strategy of seeking mandamus to collecting participants in a potential class action against the SEC.”
Ripple Wants to Involve XRP Investors
The SEC insists that Ripple fully represented the interests of XRP investors. However, the provider of distributed ledger technology wrote in its response that the XRP investors are allowed to intervene in the case as they have strong and diverse interests in the regulatory status of XRP.