Following the charges slammed by the United States Security and Exchange Commission (SEC) against San Francisco-based startup Ripple last year, the XRP community has petitioned the regulator and its acting chairman Elad Roisman.
The lawsuit filed in the Rhode Island Federal Court on January 1, 2020, as published in a press release today, seeks a “writ of mandamus” from the court to limit the charges against the blockchain company.
According to the announcement, the XRP community through Attorney John E. Deaton pleads with the court to direct Roisman to correct the ill decision taken by his predecessor Jay Clayton against Ripple.
“The writ of mandamus asks the U.S. Federal District Judge to order Acting Chairman Roisman to limit the SEC’s charges, related to XRP, to only include the XRP distributed by Ripple Labs and/or its executives, and exclude the XRP held by innocent investors,” an excerpt from the announcement reads.
The petitioners further request that the SEC should declare all XRP held by existing investors as commodities like popular cryptocurrencies Bitcoin (BTC) and Ether (ETH).
Although the petition is yet to be heard by the judge, Deaton is confident that the matter will be acted upon in the coming weeks.
Ripple’s saga with the SEC is one that has lingered for a few years, as both parties have been at loggerhead to determine what category the third-largest cryptocurrency by market should be classed.
Despite Ripple’s CEO Brad Garlinghouse reiterating that XRP is a commodity like BTC and ETH, the firm was officially charged by the SEC last month for conducting a $1.3 billion unregistered security sale.
The move was accompanied by various cryptocurrency trading companies delisting XRP, causing its value to depreciate by a large margin.
In trying to protect XRP investors from the ruins of the lawsuit, Garlinghouse revealed a few days ago in a series of tweets that Ripple is doing everything possible to settle with the US regulator. The company has an initial hearing with the SEC scheduled for next month.
With a new administration taking over the affairs of the SEC, the XRP community hopes that the charges against Ripple will be in investors’ interest.
Affiliate: Get a Trezor Model One hardware wallet for just $55 so hackers won’t steal your crypto.