The Securities and Exchange Commission (SEC), the United States’ financial regulator, has filed a response to the motion to intervene by ripple (XRP) owners. In the response, the SEC states that the XRP holders do not put forward any new arguments and that the judge must therefore reject the motion.
The SEC is suing three parties in the lawsuit, Ripple, CEO Brad Garlinghouse and co-founder Chris Larsen, the SEC said. In response to the motion to intervene, with which the XRP holders in question want to make themselves part of the lawsuit, the SEC states that they are forcing the regulator to expand the case:
“The filers are essentially trying to force the SEC to take enforcement action against individual XRP investors in the secondary market.”
The motion to intervene would therefore have no legal basis due to the sovereign immunity the SEC has. This argument was also successfully advanced by the SEC in response to an earlier motion by investors.
In addition, the SEC states that the motion contains virtually no new arguments. The arguments in the motion are actually the same as those of Ripple and co. The SEC therefore believes that the XRP investors are already sufficiently represented by the three accused parties in this case.
Ripple also submitted a response. The company argues, not entirely unexpectedly, the opposite. Ripple believes that XRP investors have “a strong and clear” interest in the regulatory status that Ripple will eventually receive.