XRP’s investors don’t want their holdings to be mixed up with Ripple’s.
Several investors in XRP have appeared before a Rhode Island court, seeking to change the course of the Securities and Exchange Commission’s case against Ripple.
In response to what it calls „the most important SEC enforcement action in modern history,“ the January 1 request is a petition for an „injunction. The injunction is effectively just an order for a public official, in this case the SEC Chairman, to do his job. The filers are Immediate Bitcoin asking the new president, Elad Roisman, to alter the course that his predecessor, Jay Clayton, set when he began enforcing the law against Ripple just before his departure.
Elad Roisman appointed acting SEC president, according to Hester Peirce
The petitioners argue that the SEC’s action operates in defiance of its legal mandate to protect investors:
„Instead of protecting investors and sharing information to help investors make informed decisions, as required by the mission statement, Defendant knowingly and intentionally caused multi-million dollar losses to innocent investors who purchased, traded, received and/or acquired the XRP digital asset, including the named petitioners and all others similarly situated.
The US SEC files suit against Ripple and calls XRP a „$1.3 billion unregistered securities offering
Interestingly, XRP investors have made their case in Rhode Island, while Ripple’s case is happening in the Southern District of New York.
The SEC initially filed its case against Ripple on December 22, after many months of investigation into the sale of XRP from Ripple, which began in 2013. The investors‘ petition disagrees with the SEC’s deadline for filing this action and also seeks to establish a contrast between Ripple’s XRP and the investors‘ ownership:
„Not only is it legally incorrect and intellectually dishonest, but it is absurd to declare the XRP held by thousands of innocent investors, who have absolutely no connection to Ripple or its executives, as a security.
More cryptoexchanges in the US continue to suspend or remove XRP from their platforms
The use of an apostrophe instead of a comma, although accidental, is in its own way revealing.
The ultimate goal of the petition is to get the court to order the SEC to „amend its complaint against Ripple to exclude the assertion that the XPRs owned by the petitioners are securities. Such a change, while not helpful to Ripple, would in theory allow investors to freely renegotiate their holdings. Anyone who owns any of the circulating supplies of XRP knows that the SEC definition has ruined its results.
The value of XRP has collapsed since the SEC began its application. Many exchanges have announced that they are suspending or delisting XRP, which has led to a liquidity crisis for holders. This is despite assurances from Ripple’s founder, Brad Garlinghouse, that the token would be fine in the event of such action.