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Blockchain Association Requests Authorization To Support Ripple Against SEC

Late Friday, the Blockchain Association asked the court for permission to intervene as a friend of the court in Ripple’s continuing defense against the Securities and Exchange Commission (SEC).

The SEC sued Ripple towards the end of 2020 on charges that it offered XRP as an unregistered securities. Since then, the matter has undergone a series of procedural procedures, and the parties have now submitted their applications for summary judgment.

On Friday, the Blockchain Association requested the court handling the case for permission to join the lawsuit, as well as the actual amicus brief.

“The SEC’s extremely broad interpretation of the securities laws would have devastating effects on the industry,” the motion for leave said.

According to a memorandum of law in support of the request for leave, the real brief highlights other uses of crypto tokens inside the sector rather than solely Ripple. The court should consider the precise purpose of a token, and the SEC illegally used secondary sales as evidence that the corporation was breaking federal securities laws.

According to the complaint, many tokens are utilized in secondary market transactions and do not fit the various elements of the Howey Test, a Supreme Court case that is commonly used as precedent in determining whether an asset is a security.

Much of the brief is devoted to determining how extensively securities regulations apply to tokens outside of initial public offerings. According to the filing:

“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.”

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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.