US District Judge Analisa Torres has ruled that individuals who own Ripple Lab’s XRP digital currency will not be permitted to join the lawsuit against the US Securities and Exchange Commission (SEC) as defendants.
Previously, owners tried to use “friends of the court” briefs seeking admission to the ongoing legal battle in which SEC alleges that Ripple Labs sold securities by violating existing regulation.
On Monday, Judge Torres explained that adding the plaintiffs would mean that SEC would have to pursue them as potentially guilty parties as well.
However, Torres granted admission to Ripple holders as “amicus curiae”, which means they are not involved in the litigation but can still attend the court, issue advice and provide information upon requests from prosecutors and judges.
“The court concludes that amici status strikes a proper balance between permitting movants to assert their interest in this case and allowing the parties to remain in control of the litigation”, Torres said, according to Law360.
SEC alleges that Ripple may be sitting on much as $1.3bn in “ill-gotten gains”, referring to the sale of XRP tokens which, according to the regulator, constitute unregistered securities.