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SEC Requests Court That John Deaton And XRP Holders Be Stripped Of Amici Status In Ripple Case

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XRP holders may no longer be able to contribute to Ripple’s legal battle with the SEC.



A redacted copy of the SEC’s amici motion letter to Judge Analisa Torres shared on Twitter on Tuesday by James K. Filan reveals that the SEC is pushing to strip XRP holders of amici status and prevent further participation of the XRP holders’ representative, John Deaton.

 

According to the SEC’s filing, recent steps taken by Deaton constitute a threat to an expert witness. The SEC notes that Deaton has sought to provide affidavits to contest statements from an expert witness and revealed the witness’s identity to the public. This move, the SEC says, exceeds the bounds of the privileges offered by the amici status, adding that it provides no additional support to Ripple’s case as they can make such arguments.

In conclusion, the heavily redacted letter read:

“In addition, the Motion seeks to brief factual rather than legal issues, to do so on a non-dispositive motion, and to make arguments that Defendants are capable of making. Movants’ Motion should be denied, and, pursuant to the Court’s broad discretion to permit or deny the appearance of amici, Deaton should be barred from making additional filings or otherwise participating in this case. The SEC may seek further relief from the Court in light of Deaton’s and his followers’ recent conduct.”

In what was considered a big win for Ripple in their legal battle with the SEC, Torres first granted XRP holders amici status on October 4, last year. The status usually granted to persons who would be greatly affected by the outcome of a case meant that XRP holders could contribute to legal matters through their representative John Deaton who filed the motion.

It is worth noting that the nearly two-year-long legal battle has taken its toll on both the firm and holders of the XRP token. As previously reported by The Crypto Basic, Ripple chief Brad Garlinghouse revealed that the company would have spent over $100 million in legal fees at the end of the case. Meanwhile, several holders have taken losses due to the impact the case has had on the price.

Notably, Ripple scored a big win last Wednesday as Magistrate Judge Sarah Netburn denied the SEC’s motion to seal documents relevant to drafting the controversial William Hinman speech under attorney-client privilege.

At the time of writing, the XRP token is trading at the $0.3768 price point on mainstream crypto exchanges. It is up 5.52% in the last 24 hours and 20.26% in the last seven days.

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Ammara
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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