{"id":476221,"date":"2022-07-21T06:00:37","date_gmt":"2022-07-21T03:00:37","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/sec-objects-to-xrp-holders-aiding-ripple-defense\/"},"modified":"2022-07-21T06:00:37","modified_gmt":"2022-07-21T03:00:37","slug":"sec-objects-to-xrp-holders-aiding-ripple-defense","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/sec-objects-to-xrp-holders-aiding-ripple-defense\/","title":{"rendered":"# SEC objects to XRP holders aiding Ripple defense"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2ea622f2cd6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2ea622f2cd6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-objects-to-xrp-holders-aiding-ripple-defense\/#%E2%80%9D_SEC_objects_to_XRP_holders_aiding_Ripple_defense_%E2%80%9C\" >&#8221; SEC objects to XRP holders aiding Ripple defense &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/sec-objects-to-xrp-holders-aiding-ripple-defense\/#Deaton_queries_SECs_treatment_of_McCaleb\" >Deaton queries SEC&#8217;s treatment of McCaleb<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_SEC_objects_to_XRP_holders_aiding_Ripple_defense_%E2%80%9C\"><\/span>&#8221; SEC objects to XRP holders aiding Ripple defense &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNDU1ZjlhMTUtNzNiMS00YjI3LTg0YzMtODJiMDcwZDYwOTMzLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-28d77a7a>The Securities and Exchange Commission (SEC) is attempting to block XRP holders from aiding in Ripple\u2019s defense, and prohibit attorney John E. Deaton from any further participation in proceedings.\u00a0<\/p>\n<p>In its official <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.dropbox.com\/s\/ulwowxyocq02aup\/SEC%20Letter%20Requesting%20that%20Deaton%20Be%20Prohibited%20from%20Further%20Participation%20in%20Case.pdf?dl=0\">objection<\/a> submitted on July 19, the regulator opposed the decision to recognize 1,746 XRP holders as &#8220;amici curiae&#8221; along with attorney John E. Deaton. <\/p>\n<p>Amici (plural: amici curiae) means \u201cfriend of the court\u201d \u2014 an individual or organization not a party to a legal case but is permitted to assist a court by providing information, expertise, or insights.\u00a0 In this case, in support of Ripple\u2019s defense. <\/p>\n<p>Deaton has 3,252 affidavits signed by the token holders essentially stating that they are victims of the SEC\u2019s lawsuit against Ripple as a result of lost profits.<\/p>\n<p>Holders claim in the affidavits that they either did not assume legal responsibility for purchasing XRP, they bought the tokens for utilitarian purposes instead of investment purposes, or they did not buy based on promises made by the company and its representatives.<\/p>\n<p>However, in its objection to XRP holders, the commission claimed that they are attempting to operate outside of strictly legal issues. The SEC wrote:<\/p>\n<blockquote><p>\u201cMovants do not propose briefing on legal issues. Instead, they wish to present arguments based on 3,252 affidavits \u201cattesting\u201d to certain facts.\u201d<\/p><\/blockquote>\n<p>The commission has cited alleged threats by Deaton against former SEC Chairman Jay Clayton as reasoning to dismiss him as amicus. The SEC included a redacted letter dated June 7 to Judge Torres that cites a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">YouTube<\/a> video from 2021 in which Deaton stated he \u201cmight have to walk over and slap the [profanity] out of former SEC Chair Jay Clayton.\u201d<\/p>\n<p>The XRP holders and Deaton as amici are required to submit a public reply to the SEC\u2019s objection by July 25.\u00a0<\/p>\n<p>Ripple is a blockchain company that issues the XRP token. The SEC has alleged in an ongoing court case which started in 2020 that Ripple and its executives Brad Garlinghouse and Christian Larsen sold XRP as unregistered securities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Deaton_queries_SECs_treatment_of_McCaleb\"><\/span>Deaton queries SEC&#8217;s treatment of McCaleb<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Meanwhile, Deaton has claimed that the SEC has been inconsistent with its <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lication of the law against Ripple, Garlinghouse, and Larsen. In a July 19 thread on Twitter, the lawyer explained that if the SEC truly thought XRP was a security, it would have filed an injunction against Ripple and issued a cease and desist order against the two executives and Jed McCaleb from selling their tokens.<\/p>\n<p>Ripple cofounder Jed McCaleb has sold nine billion XRP since leaving the company in 2014.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The SEC claims <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/XRP?src=hash&amp;ref_src=twsrc%5Etfw\">#XRP<\/a> itself is a security and anyone who sells it is violating Section 5 of the Securities Act. The SEC claims <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Ripple?ref_src=twsrc%5Etfw\">@Ripple<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/bgarlinghouse?ref_src=twsrc%5Etfw\">@bgarlinghouse<\/a> &amp; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/chrislarsensf?ref_src=twsrc%5Etfw\">@chrislarsensf<\/a> \u201cenriched\u201d themselves at the expense of investors and it is  seeking $1.3B in disgorgement from these defendants. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/9nJ1iNroth\">https:\/\/t.co\/9nJ1iNroth<\/a><\/p>\n<p>\u2014 John E Deaton (207K Followers Beware Imposters) (@JohnEDeaton1) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JohnEDeaton1\/status\/1549143190703407107?ref_src=twsrc%5Etfw\">July 18, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The outcome of this case could determine whether XRP is a security. If the judge rules in favor of the SEC, it could be the precedent the commission needs to pursue legal action against other crypto projects that sold tokens similarly to Ripple.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/sec-objects-to-xrp-holders-aiding-ripple-defense-moves-to-prohibit-lawyer\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; SEC objects to XRP holders aiding Ripple defense &#8220; The Securities and Exchange Commission (SEC) is attempting to block XRP holders from aiding in Ripple\u2019s defense, and prohibit attorney John E. Deaton from any further participation in proceedings.\u00a0 In its official objection submitted on July 19, the regulator opposed the decision to recognize 1,746&#8230;<\/p>\n","protected":false},"author":1,"featured_media":476222,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvNDU1ZjlhMTUtNzNiMS00YjI3LTg0YzMtODJiMDcwZDYwOTMzLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75034,74898,75557,117,70934,72287],"class_list":["post-476221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-ripple","tag-sec","tag-xrp","tag-business","tag-regulation","tag-security"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/476221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=476221"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/476221\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/476222"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=476221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=476221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=476221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}