XRP Army won't be in attendance at the SEC vs Ripple says federal Judge
March 17, 2021 1:42 PM
The XRP community has been pushing to be a third-party defendant in the U.S Securities and Exchange Commission legal battle with Ripple.
The federal judge was quick to banish such claims as she denied the motion which was on behalf of 6,000 XRP holders, although a future window is left open for the attorneys representing XRP investors to file again.
According to the previous court filings, judge Analisa Torres has denied the motion to intervene in this case, Torres argued that the interest of token holders, in this case, was not well defined in the suit against Ripple labs and some of its executives.
The motions were denied by the federal judge without bias giving the attorneys representing XRP holders a chance to refile in the future. A pre-motion letter to the SEC with a chance to respond will have to be in the filing.
Court rules only allow the Securities and Exchange Commission three business days to respond to the motion. However, the SEC has requested an extension of the date to March 22. If the SEC request is granted it's still very unclear if the attorneys representing XRP investors would be allowed to file another motion in a bid to intervene.
XRP investors may not be able to seat at the court in the SEC case against Ripple labs if an extension is blocked.
In December 2020, the Securities and Exchange Commission announced its lawsuit against Ripple labs after accusing the firm of selling unregistered securities. XRP tokens suffered as a result of the news as the price declined over 60% as it was initially trading at around $0.58, at the time when the news broke out in December the token price fell to $0.21.
In the heat of the SEC lawsuit against Ripple, various U.S crypto exchanges have had to halt trading for XRP or delist until they are clear on this issue. Ripple and MoneyGram recently ended their partnership as the latter confirmed the ongoing case is affecting it's reputation.