As a current development, the SEC accuses XRP holders of initiating a “crusade” against the government agency, even though there were no lawsuits against any secondary investors.
The US Securities and Exchange Commission (SEC) has warned XRP token holders to stop intervening in transactions against Ripple. According to the regulator, intervention by a third party will delay the legal process and require additional resources.
The SEC claims that the actions of XRP investors forced them to take coercive measures against some investors in the secondary market.
“Claimants are mainly trying to force the SEC to initiate a sanction action against secondary market XRP investors.”
As it is known, XRP supporters had requested to join the case as a third party. The SEC has previously stated that interference in the case was inappropriate. The regulator also noted that investors did not present new arguments on the merits of the case. According to the SEC, XRP holders have launched a “crusade” against the regulator, and John Deaton, founder of the law firm Deaton Law Firm representing them, works exclusively for his own benefit:
“Deaton realized that his popularity on Twitter was growing thanks to these efforts. Therefore, the court abandoned attempts to obtain warrants and started looking for individuals who would like to participate in a possible class action lawsuit against the SEC. ”
According to the SEC’s website, the next closed hearing in the Ripple case will take place on May 6, 2021. The meeting will address issues related to the initiation or resolution of legal claims and administrative cases.