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Analisa Torres, the United States District Judge, ruled out on October 4, Monday, that the individuals that hold the XRP token of the company, won’t be allowed to act as defendants in the ongoing Ripple suit. Torres added that the Securities and Exchange Commission of the United States (SEC) would be required to launch enforcement actions against each individual holder of XRP, who participates in the case as a defendant.
Analisa Torres Says XRP Token Can’t Acts as Defendants in Ripple and SEC Battle
Recently, a twist has been introduced to the ongoing legal battle between Ripple and the Securities and Exchange Commission of the United States (SEC). The rule has come following the aim of a number of XRP token holders to file “Friends of the Court” briefs, allowing them to join the case as defendants and extend support to Ripple in its claims that the token does not hamper the securities laws.
In accordance with the revelations made by Law360, Judge Torres declared that allowing XRP token holders to join the lawsuit would compel the SEC to take enforcement action against them.
Along with this, Analisa Torres said that allowing them to join the lawsuit, would also delay the case which Ripple and token holders have requested a quick resolution to. She said:
“The court concludes that amici status strikes a proper balance between permitting movants to assert their interest in this case and allowing the parties to remain in control of the litigation.”
Authorities Winning Case Means Investors Will Be Losing Billions
Back in the month of March, the XRP holders claimed that they will be losing billions of dollars if SEC wins the case. The filing said:
“Claiming to protect investors, the SEC is seeking $1.3 billion in alleged ill-gotten gains from the named defendants, but by alleging that today's XRP may constitute unregistered securities, the SEC caused over $15 billion in losses for XRP holders.”