A federal judge has ruled on a motion by XRP holders who want to intervene in the U.S. Securities and Exchange Commission’s (SEC) case against Ripple.
U.S. District Judge Analisa Torres says that while the XRP holders cannot intervene in the case, she will allow them to act as “amici curiae” in the SEC’s action against Ripple Labs Inc.
“Amici Curiae” means “friend of the court,” according to Cornell Law School. Amici curiae can submit documents known as amicus briefs on issues relevant to the case as long as the court approves the briefs in advance.
The SEC filed its lawsuit against Ripple Labs Inc. in late December 2020, declaring that XRP is a security and accusing the San Francisco payments company of selling the crypto asset without proper authorization.
In April, lawyer John Deaton and five other XRP holders, referred to as “movants” in the case documents, filed a motion to intervene on the case “on behalf of all similarly situated XRP Holders.”
Deaton and others argued that the SEC’s claim leads to the conclusion that “every individual in the world who is selling XRP would be committing a violation,” according to Judge Torres. Deaton referred to this claim as “absurd.”
The movants also argued that their interests are not being properly represented by either party in the case.
The SEC argued that the movants are statutorily barred from intervention as defendants. Ripple countered that the XRP holders aren’t statutorily barred from intervention, but also argued that the movants should have limited participation as either ‘amici-plus’ or limited intervenors to not delay the case.
Stuart Alderoty, Ripple’s general counsel, says Judge Torres’s ruling is a positive development.