Lawyer James Filan said that the Blockchain Association has formally filed its amicus brief in Ripple (XRP) SEC lawsuit. “The SEC’s extremely broad interpretation of the securities laws would have devastating effects on the industry,” the filing said. Earlier, Judge Analisa Torres granted motions to file amici briefs to multiple supporters of Ripple and the SEC. The judge allowed 11 applicants to file the briefs — the association, six XRP holders, Coinbase, Valhil, Cryptillian, Veri DAO, the CCI, Reaper Financial, InvestReady, NSEI and Paradigm.
The Blockchain Association works on major litigation regarding blockchain issues. It advocates for a public policy environment to help blockchain networks thrive in the U.S..
On November 7, attorney Jeremy Hogan predicted that the SEC’s motion for summary judgment might not get approval over several claims. He said the commission cannot meet the burden of the Howey test. The Howey Test is a criterion the U.S. Supreme Court set to determine if a transaction qualifies as an investment contract. The Blockchain Association also, in its amicus briefing, argued that the SEC could fail to pass in the Howey test.
“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 Howey.”
Coinbase Amicus Brief
In the wake of crypto price collapse due to the meltdown of FTX, XRP lost around 14% of its value in the last 7 days. As of writing, XRP price stands at $0.3918, up 14.96% in the last 24 hours, according to price tracking platform CoinMarketCap. On Monday, after Coinbase’s request to file amicus brief in support of Ripple got granted, the XRP price jumped immediately. The exchange criticized the SEC over rulemaking for digital assets in its filings.
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