Blockchain Association Asks Court For Permission To Support Ripple• October 28, 2022 9:32 pm • Comments
A crypto lobbying organization called the Blockchain Association has reportedly filed a request to support Ripple as a friend of the court in the ongoing lawsuit between the SEC and Ripple.
This crypto lobbyist group is essentially asking for permission to join the case based on the main reason that the SEC’s broad definition of securities laws has held back much of the crypto industry.
In the motion of leave that was submitted, it stated multiple crypto tokens within the space in addition to Ripple when talking about the use cases of digital assets.
The brief then went into detail about each token’s specific purpose and accuses the SEC of wrongfully using secondary sales as evidence that a token was considered a security.
1/ Today we announced we filed an amicus brief supporting a correct interpretation of Howey in the SEC’s two-year legal battle against @Ripple.
A judge now has the opportunity to issue a substantive opinion on how Howey applies to digital assets.
Here's what's at stake🧵🧵🧵
— Blockchain Association (@BlockchainAssn) October 28, 2022
The filing went on to say that many tokens are used in secondary market transactions, and they do not meet the different tenets of the Howey Test, a Supreme Court case generally used as precedent in trying to interpret if an asset is a security.
Much of the brief focuses on the question of how broadly securities laws apply to tokens outside of initial sales.
“The securities laws do not contemplate how an asset that may have been issued as a security can exist when it is no longer attached to any form of investment contract, a crucial consideration when attempting to apply Howey,” the filing said.
Another group, the Investor Choice Advocates Network and SpendTheBits Inc. filed their own amicus brief on Friday, with the court’s permission.
These entities argued that the SEC is using a “vague” definition of “investment contract” to bring its case, and pointed to ongoing legislative efforts to define where the SEC’s jurisdiction over crypto begins and ends.
The filing concludes with the main point that the SEC should not have the authority to use its own interpretation of securities laws until actual clear guidelines are actually defined.
Otherwise, Ripple and many other crypto assets would continue to be affected which would devastate investor confidence in the industry.
This is not the first time that a third party group has taken action to help support Ripple in the ongoing lawsuit as several other parties have filed such requests in the past as well.
Whether or not the court will accept and provide permission is still to be determined, but this association’s involvement would provide further context on how the SEC’s arguments is affecting the wider crypto industry.
Association of Blockchain Crypto Lobbyist Groups Asks Court for Permission to Support Ripple Against SEC Case https://t.co/hzeh4FNgV1
— Superior Invest (@SuprInvest) October 28, 2022
The brief seeks to provide context on how much of the industry could fall under what it perceives as ill-defined regulations for how tokens are used. It also takes issue with the SEC’s “pattern of ‘regulation by enforcement'” and “history of inconsistent, incomplete, and confusing public statements.”
“The SEC’s position that market participants can simply follow the securities laws falls flat, because the securities laws do not contemplate how an asset that may have been issued as a security can exist when it is no longer attached to any form of investment contract, a crucial consideration when attempting to apply [the Howey Test].”
The Blockchain Association’s request joins a number of other groups’ attempts to submit their amicus arguments, including a coalition of XRP holders and an XRP-focused payments app called SpendTheBits Inc.
The Blockchain Association also intends to file an amicus curiae brief in the near future, according to a recent notice …Read more: https://t.co/eaBaKeTGgS
— webnow🌎 (@webnowcompany) October 28, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.