While the legal battle between San Francisco-based cross-border blockchain payment company Ripple and the United States Independent Agency continues and gains momentum, holders of Ripple’s native digital currency XRP want to stand as third party accused in the case and desire to to join the case. However, the SEC is trying to prevent them from joining the case.
The United States SEC is working to prevent holders of fourth-placed digital currency from becoming part of this lawsuit between Ripple and the SEC. The agency stated in its recent trial that if the XRP owners join the case, it will likely lead to chaos and multiple delays as well. For this reason, the agency wants the XRP holders not to be allowed to intervene in the case.
Here’s what the SEC said in the latest trial:
“Applicants should not be allowed to expand the scope of the SEC’s claims by interfering in any way with this measure. The Supreme Court precedent dictates that this type of interference in government enforcement actions is constitutionally and legally prohibited as it encroaches on the discretion of the executive prosecutor.”
A total of six investors from XRP filed an application to intervene in the litigation. These investors include Kristiana Warner, Jordan Deaton, Mitchell McKenna, James Lamonte, Mya Lamonte, and Tyler Lamonte. They preferred to be collectively referred to as Movants.
While the SEC seeks to block XRP owners and investors from getting involved in the case, US-based blockchain payment giant Ripple is backing these investors’ involvement in the case. Among those who have supported the participation of XRP holders are Ripple’s Chief Executive Officer (CEO) Brad Garlinghouse and Chris Larsen.