More developments in the on-going fight between distributed ledger technology firm Ripple and the U.S. Securities and Exchange Commission (SEC) as thee District Judge Analisa Torres ruled that individuals holding the company’s XRP token cannot act in Ripple’s on-going lawsuit as defendants.
The determination comes after several XRP token holders aimed to file “friends of the court” briefs which would permit them to join the case as defendants and support Ripple in its claims that the token does not breach securities laws and regulations.
The Judge stated that allowing XRP holders to join the suit would compel the Securities Exchange Commission to take an enforcement action against them. The judge added that it would also postponement the case. However, the judge determined that token holders can participate as a party that is not involved in the litigation but is allowed by the court to advise or provide information.
In a motion to intervene filed in March, the XRP holders would lose billions should the regulator win the case and also questioned the SEC’s claimed motives of protecting investors. The circulation of XRP has been tightly controlled by the San-Francisco-based company which still holds around 55% of the supply in escrow.
