Paradigm Files Amicus Brief Supporting Ripple Against SEC
Ripple keeps gaining fresh backers in the current court dispute. One of the most recent is Paradigm, a VC company that promotes Web3 developments and cryptocurrency ventures.
Paradigm has asked to submit an amicus brief because it believes that the outcome of the Ripple dispute might have a major influence on the growth and functioning of the cryptocurrency and Web3 industries.
The main justification offered by Paradigm is that the Howey test was used improperly.
It is emphasized in the document that no federal appellate court has determined that an asset that is the subject of an investment contract transaction is a security in and of itself or that a subsequent transfer of that asset would be a securities transaction. The SEC hasn’t cited a similar case either.
The company claims it is concerned that a decision that casually adopts the SEC’s preferred terminology could have important and unexpected repercussions for Paradigm and other businesses that want to use the new technology in a way that could benefit users.
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