The US Securities and Exchange Commission (SEC) has filed a motion to reject an application from Ripple’s XRP token holders. The document has been sent to the Rhode Island District Court.
In early January 2021, a group of investors demanded that the regulator change the lawsuit against the Californian companies and stop calling the coin a security. According to them, the SEC “deliberately and intentionally” caused “multi-billion dollar” losses to XRP holders.
SEC filed a lawsuit against Ripple
In the petition, the regulator indicated that the applicants did not provide compelling reasons for abandoning their chosen position.
“The authors of the document failed to show that platforms for trading digital assets will change course or that the value of XRP will increase if the commission amends its claim,” the SEC said.
Amid Ripple’s problems with the US authorities, some large companies have dropped support for the XRP token. Among them are Coinbase and OKCoin, Bitstamp, Kraken and Galaxy Digital.
Asset management company Grayscale Investments announced the liquidation of the investment trust based on the token from Ripple, and 21Shares has excluded it from its exchange-traded products.
MoneyGram money transfer service refused to use the product based on XRP. The California-based company was backed by another partner, financial giant SBI Holdings.
In February 2021, the SEC filed a modified version of the lawsuit, focusing on the liability of Ripple CEO Brad Garlinghouse and its co-founder Chris Larsen. The head of the company called the commission’s actions “regulatory arbitrariness.”
Garlinghouse said in March that Ripple experienced no business impact in the Asia-Pacific region due to the SEC’s filing of a lawsuit. According to him, this was facilitated by a clear regulatory framework.
Recall that on March 5, Ripple won a court case against the British investment firm Tetragon Financial Group.
Respondents SEC Motion to Dismiss US DisRI by ForkLog on Scribd