The US Securities and Exchange Commission has filed a new response to the lawsuit, this time against the intervention of XRP holders in the Ripple case.
The US SEC is trying to dissuade XRP owners from participating in the Ripple lawsuit, stating that no individual secondary market investors have been charged.
The SEC also claims that the moving companies are trying to “inappropriateExpand the scope of the Ripple case despite the fact that the agency had previously stated that intervention would require enforcement action to be taken against them. Movants attorney John Deaton is also accused of targeting the SEC. In a public attack on the SEC and its employees, Movants’ attorney used profanity and referred to physical violence.
The SEC cited two cases where Deaton used evidence of physical violence in his first response. For example, Deaton tweeted on March 12, 2021 in response to a report of a discovery conflict in the case.
On March 3, 2021, he also released a video that he described as a “mock cross-examination” of Chairman Clayton in which he made a number of inflammatory remarks, including suspicion of drug use. You cannot appear as Amici Curiae (“Friends of the court“) Because they are” too partisan “and their interests coincide with those of the defendants, according to the agency.
Movants are trying to convince the SEC to take action against individual XRP investors in the secondary market. Also, since the petitioners are not a party to the action, the SEC claims that exchanges that banned XRP trading or delisted the coin cannot help them.
The SEC contends that the applicants did not make any really new arguments. Instead, they copied the ones that Ripple had already created. By portraying Deaton as “the conspiracy theorist’s crusader,” the plaintiffs claim that the SEC is “attacking the messenger.”
It is sad and terrible that the SEC used the above scenario to indicate that Attorney Deaton promoted violence or drug use. XRP owners also state that they have a “identifiable interest” in the lawsuit, but that Ripple is not adequately representing them.