This week, Annalisa Torres – the federal judge responsible for overseeing the SEC and Ripple case – rejected a request from Ripple investors and XRP holders that they be considered a third party in the case.

The application for XRP investors was submitted by attorney “John Deaton”.

According to the official filing, XRP investors have blamed the Securities and Exchange Commission for incurring billions of dollars in losses through the lawsuit brought against Ripple.

XRP investors have accused the Securities and Exchange Commission of willful misconduct and gross negligence regarding its claims and allegations regarding the XRP digital currency.

However, the request was denied by Ms. Judge “Analisa Torres”.

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Although the proposal has been rejected for the time being, XRP investors have an opportunity to reframe the demand in the future.

hung Deaton, who made a proposal to intervene on behalf of XRP investors, via Twitter:

What did you say and comment about my fall and how we were responding?

Our application was denied with the ability to reformulate it according to the local rules of Judge Torres.

Attorney Jeremy Hogan, who followed the case closely, responded to Deaton and assured many that a request for intervention could still be made, saying:

Lawyer Deaton’s proposal to intervene, she basically said, was that the judge would have to submit a letter telling her what he was going to offer before he did.

It is a local base.

Looking at the digital currency XRP differently from Bitcoin and Ethereum:

The Securities and Exchange Commission (SEC) moved to sue Ripple and its key executives in December 2020, on the grounds that XRP should be held as collateral.

US regulators argue that by selling XRP cryptocurrency, Ripple has raised more than $1.3 billion and is in violation of existing securities law.

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Bitcoin and Ethereum, the two leading cryptocurrencies by market capitalization, have been designated as cryptocurrencies rather than securities by US regulators, on the grounds that these digital currencies are decentralized and not controlled by any company or individual.

However, XRP failed to obtain a similar status.

US regulators see XRP as compliant with the “Howey” test, which is a test to determine if a commodity falls under the scope of a security, and thus is more like an investment contract than a cryptocurrency.

The case continues…

Read also:

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