The American regulator demanded that the court remove from the proceedings with the Ripple company experts in the role of the so-called “friends of the court”, amici curiae.
Lawyer James K. Filan tweeted the text of a letter sent by the US Securities and Exchange Commission (SEC) to Judge Analisa Torres. The regulator demanded that the court annul the status of “amici curiae” for independent experts who are not considered participants in the trial and do not have a direct interest in the outcome of the case. Their task is to assist the court and provide it with the necessary information. However, the department believes that XRP holders, in particular, lawyer John E Deaton, who represents the interests of the company, should be excluded from further participation in the lawsuit with Ripple.
The SEC states that “friends of the court” professionals should not brief on legal matters. Instead, they present arguments based on the affidavits of XRP holders and the reasons for investing in the coin. Investors are convinced that the Ripple litigation has reduced their profits from XRP, and therefore they are considered an interested party. This goes beyond the privileges granted, so their involvement could delay the case, the SEC said.
Attorney John Deaton
announced on Twitter that the SEC’s arguments are meaningless. If Ripple’s 2013 ICO was illegal, then every trader selling XRP is now violating Section 5 of the US Securities Act. Then anyone who intends to sell XRP can be called an “issuer,” Deaton argues. He also suggested that former Ripple CTO Jed McCaleb, who recently sold 1.1 million XRP worth about $394,000, be included in the lawsuit.
Similar accusations about the organization of an unregistered ICO were made by the department on the Telegram Open Network (TON) platform, which became another of the high-profile proceedings with the regulator. However, the TON platform could not withstand the pressure from the SEC and was forced to close.
Source: Bits
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