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XRP Investors Files Petition Seeking SEC to Change Its Classification of XRP as Security

UTC by Benjamin Godfrey · 3 min read
XRP Investors Files Petition Seeking SEC to Change Its Classification of XRP as Security
Photo: Shutterstock

The petitioners accused the SEC of causing remarkable damage to their XRP coin holdings which has tanked in value since it filed the lawsuit.

A small team of XRP cryptocurrency investors has filed a petition with the Rhode Island District Court in a move that appears to be targeted at protecting their investments and not necessarily in favor of Ripple. According to a report by The Block, the XRP investors and petitioners named John Deaton, Jordan Deaton, James Lamonte, Tyler Lamonte, Mitchell McKenna, and Kristiana Warner, are seeking a Writ of Mandamus in the case filed against Ripple by the United States Securities and Exchange Commission (SEC) on December 22nd, 2020.

As detailed by Investopedia, a Writ of Mandamus is a court order compelling someone to execute a duty that they are legally obligated to complete, and in this case, the petitioners want the court to compel the SEC and its Acting Chairman Elad Roisman to amend the complaint it has against Ripple so that their XRP holdings aren’t considered securities. Coinspeaker reported earlier that the SEC filed a $1.3 billion lawsuit against Ripple Labs Inc and the company’s CEO Brad Garlinghouse and Co-founder Chris Larsen for allegedly involved in the sales and distribution of XRP coins as unregistered securities.

According to the petitioners, the SEC’s complaints would have been targeted at the XRP sold from 2013 to 2015 and not “Today’s XRP” which they claim is not a security. They noted that “Any colorable claim or argument that XRP constitutes an unregistered security could only be made in those very early days and distributions. The SEC could have targeted those early Ripple distributions and any individual sales by its executives without attempting absurdity by calling the XRP in the Petitioners’ wallets unregistered securities.”

The petitioners also accused the SEC of causing remarkable damage to their XRP coin holdings which has tanked in value since it filed the lawsuit. They noted that should the continued delisting of XRP coin be allowed to continue with the exchanges, their XRP will turn out to be worthless eventually.

Greenlight at the End of the Tunnel for XRP Investors and XRP?

Amongst the faults the XRP investors found with the SEC was the timing of the filed lawsuit. They said that the former SEC Jay Clayton “chose to file, quite possibly, the most significant SEC enforcement action in 76 years as he was walking out the door after allowing the Digital Asset XRP to be sold for SEVEN years, leaving a new administration to deal with the aftermath.”

They are positive that there is light at the end of the tunnel as “A different political party is assuming control and it is quite possible, if not likely, that they withdraw and/or amend and limit the Complaint’s scope and allegations related to XRP.” 

XRP coin also showed signs of recovery today after plunging by almost 22% in the past week according to CoinMarketCap. The coin has rallied 4.05% in the past 24 hours, the first profitable day the coin has recorded since the damning lawsuit was filed. Should the Court grant the petitioners the Writ of Mandamus, the XRP coin may see more bullish growths in the coming days and weeks.

Altcoin News, Blockchain News, Cryptocurrency news, News, XRP News
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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