The US Securities and Exchange Commission has warned holders of XRP to desist from interfering in the case between the SEC and Ripple. Holders of the asset have more recently played a part in opposing SEC in the lawsuit. The commission however stated that it has no case against any individual secondary investor, and as such, investors should avoid interfering in the legal matter.
The SEC’s Arguments
The SEC made it known that the recent actions of many XRP investors is compelling the agency to take enforcement actions that will be unfavorable for the movants. The US regulator condemned the desperate actions of secondary investors. While it condemned the actions of XRP investors, it supported its own actions, stating that it is covered by sovereign immunity.
The SEC also emphasized that XRP investors who formerly invested in exchanges that eventually delisted the controversial token cannot demand relief from such exchanges since they are not a part of the lawsuit.
SEC Says XRP Investors Brings Nothing new to the Case
According to the commission, the movants did not present a new valid argument against to object. They simply repeated previous defense statements made by Ripple.
In the defense made by the investors, they emphasized the regulations in place for Ripple, the valid use cases as opposed by the SEC, and other issues that were brought to the fore in the lawsuit. All these however seem to be nothing new to the regulatory commission.
SEC further amplified the gravity of the actions of XRP holders by describing it as a crusade or revolt against the government agency to expose alleged corruption. One of the well-known XRP supporters, John Deaton has also been accused of simply trying to gain popularity on social media, rather than being recognized as a devoted fighter for justice.
Ripple on the other hand want the backing of its holders in the legal matter. Responding to the appeal from the SEC, Ripple said that users or XRP investors should be permitted to give their support in the legal matter since users have a “strong and distinct” interest in the regulatory status of XRP.