According to a Forbes report, some legal experts believe the agency (SEC) had entirely failed to establish its case against Ripple’s XRP. Thousands of retail XRP holders who became involved in the case may have been a significant factor in this.
Although they were not permitted to be named as defendants with Ripple, the judge allowed them to submit amicus briefs so that their opinions could be heard as well.
The Forbes report read, “The verdict could drastically limit the SEC’s authority to regulate crypto in the United States. If that’s how it ends, it will have been a self-inflicted disaster from the start.”
Forbes also cited Stuart Alderoty, Ripple’s general counsel, who indicated in a recent interview that the company is prepared to settle if the SEC determines that XRP is not a security.
“If the SEC makes clear that Ripple sales and distributions of XRP and XRP trading in the secondary market does not constitute a security, if they’re willing to acknowledge that, the case settles and settles very, very quickly…, we have no choice to continue to defend the case.”
Attorney John Deaton responded to the post by confirming that he will be submitting an amicus brief later today on behalf of more than 75,000 XRP holders.
“I can assure you it doesn’t get better for @GaryGensler later today when XRPHolders speak out,” he said.
According to the same report, 75,000 XRP holders joined the case under the leadership of lawyer John Deaton, and more than 3,000 of them gave affidavits to Ripple’s defence team.
In December 2020, the SEC brought this case against Ripple and its top officials, claiming that the XRP token connected with Ripple is an unregistered security.
It implied that the cryptocurrency has been a security since 2013 and that the billions of XRP sold on the secondary market in the seven years prior to the lawsuit were also securities.
