After last week lawyer John E. Deaton commenced a new attempt to ensue on behalf of the currently 10,000 XRP owners in the ongoing Ripple lawsuit, the Securities and Exchange Commission has answered to this initiative with a rejection.
As one would anticipate, the SEC resists the intervention of Deaton and his 10,500 backers. The watchdog claims that Deaton did not explain what claims he plans to bring forward to the Commission. Meanwhile, the regulator referred to the law:
“Congress has barred consolidation or settlement of claims without the approval of the Securities and Exchange Commission, and absolute immunity disallows a petitioner from producing claims against the Securities and Exchange Commission. This fact alone prevents the applicant’s intended intervention.”
Furthermore, the SEC alleges that Deaton and his partners are seeking to sway the reintroduction of the token on cryptocurrency exchanges only to “restart speculative trading” of XRP, which the SEC argues is proof that Ripple Labs “offered and distributed XRP for speculative investment.”
The SEC’s final argument is that investor involvement will cause unnecessary delay, complexity, and confusion in the context of the lawsuit.
