Petition rejection

The US Securities and Exchange Commission (SEC) has filed a motion to dismiss Ripple's XRP token holders application. The document has been sent to the Rhode Island District Court.

In early January 2021, a group of investors demanded that the regulator change the lawsuit against the California-based company and stop calling the coin a security. They said the SEC had "deliberately and intentionally" caused "multi-billion dollar" losses to XRP holders.

In the motion, the regulator said the petitioners failed to show good cause for not taking the chosen position.

"The filers failed to show that digital asset trading platforms would change course or that the value of XRP would increase if the commission amended its lawsuit", the SEC said.

Amid Ripple's problems with US authorities, some major companies have withdrawn their support for the XRP token. These include Coinbase and OKCoin, Bitstamp, Kraken and Galaxy Digital.

Management company Grayscale Investments announced it was liquidating a token-based investment trust from Ripple, while 21Shares removed it from its exchange-traded products.

Money transfer service MoneyGram dropped its XRP-based product. The California-based company was backed by another partner, financial giant SBI Holdings.

In February 2021, the SEC filed an amended version of the lawsuit, focusing on the liability of Ripple CEO Brad Garlinghouse and its co-founder Chris Larsen. The head of the company called the commission's actions "regulatory arbitrariness".

In March, Garlinghouse said that Ripple had not experienced any impact on business in the Asia-Pacific region because of the SEC lawsuit. A clear regulatory framework contributed to this, he said.

As a reminder, on March 5, Ripple won a lawsuit against British investment firm Tetragon Financial Group.