Ripple’s lawsuit with the US Security and Exchange Commission (SEC) has continued to develop a new twist with the latter questioning the regulator why XRP holds a securities status.

Ripple Lawyer Claims XRP holders are unaware of Ripple First Time Investing

In an opinion on November 21, Ripple lawyer, John E Deaton claimed he has “objective empirical evidence” showing that most (approximately 60%) of XRP holders are unaware of Ripple when it comes to token investments for the first time. According to Howey’s test, it is almost impossible to determine that the XRP community is relying on the promises and temptations of promoters or companies they are ignorant of.

The SEC must answer the key question before December 6, 2021, why XRP holds securities status, making it one of the most critical judgment dates for XRP holders.

XRP Holders Suffer From Legal Disputes

Lawyer Deaton was granted amicus curiae status by the court last month for raising brief legal questions and concerns on behalf of individual Movants and the XRP community. Although the SEC continued to claim the securities status of XRP and continued to accuse the defendant of violating securities laws instead of selling those digital assets. 

However, Movants was pleased with that stance last month, claiming that if XRP sales were marked illegal, the list of culprits would go well beyond Ripple and individual defendants.

Individual Movants argued that the SEC case against Ripple resulted in targeted attacks on XRP holders through misrepresentation of the use of XRP by XRP holders and the link between XRP and the defendant. Movants challenged the SEC’s statement that “the nature of XRP itself makes it a security,” indicating that doing so will lead to the following conclusion: Anyone in the world who sells XRP will violate Article 5 and the XRP holder’s XRP will be influenced by the outcome of the dispute.

Despite the undeniable concerted efforts of the XRP community in the fight against the SEC, XRP token holders are still trapped in frozen assets and relatively bearish operations during one of the fastest bull seasons. Last month, Deaton’s attorneys appealed to the court on behalf of the XRP community to deny a further extension because a large number of XRP holders were holding their XRP in an also “frozen” retirement account. Due to an ongoing lawsuit, XRP holders will not be able to use their funds in any way, including the inability to withdraw funds.