Six investors of the crypto asset XRP have commented on the complaint brought against Ripple Labs by the U.S. Securities and Exchange Commission (SEC).
In an amicus brief, the six XRP holders argue that if the SEC is successful in its position that the seventh-largest crypto asset by market capitalization is a security, numerous players in the cryptocurrency industry would be damaged.
“Amici curiae humbly submit this brief because, if the SEC prevails in its claims against XRP, it would have the jurisdiction to regulate a large number of non-parties, including digital asset exchanges, developers, suppliers, and regular users and holders of XRP, including amici.
This would have a profound impact on the whole secondary market for XRP and maybe the entire cryptocurrency industry.
While the SEC uses this enforcement action as a test case to enhance its jurisdictional reach, millions of innocent investors suffer the consequences.”
The six holders claim that the action filed by the SEC against Ripple in late 2020 has prevented thousands of XRP holders from accessing their crypto holdings.
Further, the XRP holders contend that even if some owners of the seventh-largest crypto asset by market capitalization purchased it as an investment, it was not at Ripple’s request.
Thousands of innocent holders’ life savings and retirement accounts are locked, unable to transfer their XRP to Bitcoin, Ether, or US dollars, as a result of the charges.”
The Coinbase exchange and the Blockchain Association, a crypto industry lobbying group, are among the other entities that have officially submitted amici papers this week either in favour of Ripple or in opposition to the SEC.
Also Read: Sony’s PlayStation to Receive NFTs?