InstaForex

October 8, 2021

US Court Calls 6 ‘Amicus Curiae’ XRP Investors To Help SEC-Ripple Case

 XRP investors have been granted ‘amicus curiae’ status in an effort to help determine the direction of the ongoing Securities Exchange and Commission (SEC) - Ripple Labs lawsuit.


‘Amicus curiae’ or companion of the court refers to individuals or groups who are not involved with the case but are allowed to submit any opinions, sources, and documents relevant to the issue for as long as it will be approved by the court.


The appointment was made by United States (US) court judge Analisa Torres after the applications of six crypto investors as defendants were rejected.


The SEC is also seen to disagree with the court’s decision because under the law, ‘movants’ are barred from intervening as defendants. Ripple rejected the opinion but stressed they deserved to be ‘amicus curiae’ so that the case was no longer pending.


For the record, in March as many as 6,000 XRP investors wanted to appear as defendants voluntarily.



However, a total of 5 XRP investors including lawyer John Deaton known as ‘movants’ in the case had filed an intervention in April, representing other XRP investors.


Subconsciously, the case has dragged on for nearly a year since the SEC sued Ripple in December 2020.


Torres ’decision is considered a benefit especially during the study of the case, although the court may use its discretionary power to request or deny further applications.


Previously, Torres had claimed that every investor who sold XRP had committed an offense under Section 5. However, the statement was refuted by Deaton, "nonsense" through his tweet on May 8:


theory of the case:


"Every individual in the world who is selling XRP is committing a Section 5 violation."


That was the Judge, not me. I know - it’s absurd. I’m sure some people find it hard to believe the SEC would make this argument. But they claim XRP has no utility.


- John E Deaton (@JohnEDeaton1) May 8, 2021