Ripple’s long-running struggle against the American regulatory Securities and Exchange Commission (SEC) looks set to rumble on – although it could be set to take a new turn as the presiding judge is set to make a key decision, while XRP holders are itching to enter the legal area.
The case centers around the SEC’s claim that the Ripple-affiliated XRP coin is an unregistered security – and Ripple’s claims to the contrary. The latest bone of contention is a so-called combined brief that the SEC has compiled. This 60-page document would essentially allow the regulator to file excess pages that would let it combine opposition to motions put forward by lawyers representing Ripple’s leadership: the CEO Brad Garlinghouse and the Executive Chairman Chris Larsen.
But in a legal document, Larsen and Garlinghouse’s legal team asked the presiding New York District Court magistrate, Judge Analisa Torres, to turn down the SEC request, claiming that the regulator wants to take “a consolidated position to further conflate the relevant allegations” against the duo.
The legal team claimed that the combined brief would “muddy” the legal waters, and instead wants the regulator to “address the specific arguments raised by each individual defendant,” a process they said would allow the executives to “more squarely address the SEC’s opposition arguments against them on reply, and ultimately enable the court to clearly see the parties’ arguments.”
But it looks as though the battlefield could be on the verge of becoming rather crowded. Last month, an attorney representing a group of XRP holders filed a document petitioning the court to let them in on the action.
The attorney wrote that the Ripple chiefs had made it clear that they “do not represent the interests of XRP holders.” And Larsen and Garlinghouse’s team claimed that although they had “no relationship” to the holders, they nevertheless “have strong and distinct interests in the regulatory status of XRP,” adding:
“[The holders] should not be permitted to broaden the scope of the SEC’s claims by intervening in this action in any capacity.”
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