Former federal prosecutor James K. Filan has been involved in the lawsuit brought by the Securities and Exchange Commission (SEC) against Ripple Labs and two of its executives. Charged with the alleged illegal sale of an unregistered security, the XRP token, Filan shared his opinion on the case, presented crucial documents and discussed an important issue with the community.
According to Filan, the XRP community, with its active role and involvement, is having “a huge impact” on the case. As evidence, the attorney said the New York Southern District court handling the case has increased public accommodation from 500 to 4,000 people.
The court has also opened an international phone number for anyone interested in hearing the discovery lecture. This session will be held on April 30 and will consider the SEC contacting foreign regulatory entities to build their case against Ripple Labs. The defendants consider this to constitute a violation of Federal Procedure and the Hague Convention.
#XRPCommunity You are making a big impact in #SEC_News v. #Ripple. You are being listened to. The Court increased public accommodation from 500 to 4,000 people and provided an international telephone number. But please follow the rules of the Court, don’t be like @SEC_News)!
– James K. Filan (@FilanLaw) April 21, 2021
A petition to “end the war” on XRP
Another community effort has been led by attorney John E. Deaton. In March, Deaton filed a formal pleading prior to filing. Subsequently, Judge Analisa Torres granted him permission to represent more than 10,000 XRP investors.
Additionally, Deaton recently asked the community to sign a petition asking SEC Chairman Gary Gensler to “End the War on XRP.” The regulator filed this lawsuit under the administration of Jay Clayton at the SEC, Gensler is believed to have a more pro-crypto approach. Deaton said the petition will serve as a way to “apply pressure from all possible angles.”
The attorney is also trying to create a “lookup list” for all XRP holders who have signed their previously filed petition for a Class Action Lawsuit. Deaton stated the following:
I hope to produce a searchable list of everyone who has signed up, all over 12,700. That way, you can see your name and know that it has been included. If your name is not on the list for any reason, we will make sure it is included. Thanks.
Deaton has highlighted the importance that the SEC versus Ripple Labs case could have for the entire crypto industry. If victorious, some experts have claimed that the regulator could attempt similar action against other crypto projects.
In that sense, the Commodity and Futures Trade Commission (CFTC), Dawn Stump, said it was “observing the outcome of this lawsuit.” Considering it as a key point for other entities within the US to obtain regulatory clarity, Commissioner Stump said:
The question of whether XRP is a security will be crucial. XRP is similar to bitcoin and other digital assets, but also different in key ways, which prompted the SEC investigation (…). I am closely following the outcome of this case because it will help establish the scope of the SEC’s authority in the digital asset space.