SEC v. Ripple – Amici takes aim at Doody’s ‘reasonable’ XRP holders assertion

The lawsuit between American regulators (SEC) and the San Francisco-based fintech firm Ripple continues to see new developments. Ergo, it is perhaps no surprise that holders of XRP have grown impatient given the dynamics and volatility of the cryptocurrency space.

Bearing this in mind, John E. Deaton, Counsel for ‘Amici Curiae,’ has filed a letter asking U.S District Judge Analisa Torres to consider the views of XRP holders.

(The status, which is Latin for ‘Friend of the Court,’ refers to someone who is not a party to a case, but who assists the court by offering information, expertise, or insight that has a bearing on the issues being discussed.)

Want to be friends? 

John E. Deaton has filed a motion letter asking the judge to permit him to write a brief on behalf of 67,300 affected/hurt XRP holders. This move comes on the heels of testimony from an expert SEC witness – Patrick B. Doody – who gave a report on what information ‘reasonable’ XRP holders relied on while buying the token.

an expert SEC witness who gave a report on what information “reasonable” XRP holders were relying on when they bought the token. Deaton says he bets this witness gave testimony without interviewing a single XRP holder. More to come.

— Eleanor Terrett (@EleanorTerrett) May 21, 2022

Popular attorney James Filan was one of the first to tweet about this development, claiming,

“Amici request permission to file brief regarding SEC expert who claims to know motivation of XRP holders when purchasing XRP. Amici also seek access to expert’s report and deposition testimony.”

Ergo, Amici (John Deaton), representing 67k “ACTUAL XRP HOLDERS” would provide the Court with a meaningful perspective. It would ensure complete and plenary presentation of the said issue, helping the Court reach a fair conclusion.

Such assistance would prove to be beneficial during a briefing on dispositive motions. However, the Court may exercise its discretion to request or deny further applications as appropriate. Whatever the case, optimism is high given the previous green light. Last October, the judge’s order granted Amicus Curiae status to 25k XRP Holders.

“Movants, in their individual capacities, shall be permitted to act as amici curiae in this action. As such, Movants shall be allowed to assist the Court by briefing legal issues relevant to the case as approved in advance by the Court,” the Order stated.

Any surprises ahead? 

Well, for one, the SEC might deny this. No brainer here. Jeremy Hogan too shared this sentiment on social media.

John Deaton is marching into Court!

The SEC wants an “expert” witness to give testimony about what XRP holders were thinking when they bought XRP.

Deaton represents 67k ACTUAL XRP HOLDERS and wants to present what they were ACTUALLY thinking.

SO of course, the SEC opposes it. https://t.co/Xtz1g1TGBd pic.twitter.com/NgPHLt8b4t

— Jeremy Hogan (@attorneyjeremy1) May 22, 2022

Additionally, another delay might also be a possibility. Yes, XRP holders secured a win in October 2021, but at what cost?

Consider this – Mr. Deaton filed the motion to intervene in March and had to wait until October for a decision.

Worth pointing out, however, that XRP was noting an uptick of just 1% at press time.