Blockchain Association Stands With Ripple Labs In Its Legal Fight With US SEC
Blockchain Association, a crypto advocacy network, has declared to support Ripple Labs during its ongoing legal fight with the U.S. Securities and Exchange Commission (SEC). It asserted that the respective lawsuit could have a huge significance for the crypto market’s future. In a post published on the 28th of October, the advocacy group declared it would favor the crypto economy of the United States by submitting an amicus brief.
Ripple Obtains Support from Blockchain Association amid Its Case against the SEC
With this application, it will appear as the court’s friend in the enforcement action of the SEC against Ripple. Almost a couple of years back, the SEC emphasized that the regulatory agency was filing a legal case to confront the crypto exchange Ripple, Christian Larsen (the former CEO), and Brad Garlinghouse (the present CEO) in 2020’s December for supposedly collecting $1.3B via the sale of unregistered securities through XRP (the local token of the exchange).
The association noted that the current case – which is the only one throughout the lengthy list of endeavors made by the SEC to carry out regulation via enforcement – indicates the efforts done by the SEC to reinforce and legalize the considerably general interpretation that it generated over the Howey test. The Howey Test specifies what meets the requirements of being considered an investment deal to become liable to the securities laws of the U.S.
The Blockchain Association delineated their perception stating that Gary Gensler and the SEC’s views could put a destructive impact on the industry of cryptocurrency. As per the institution, there are a lot of use cases of blockchain technologies within the crypto market, including the purchase of services and goods, intellectual property rights conveyance, and tracking of inventory.
In their words, the security laws’ implementation to the respective tokens, if or not via the Howey test’s prism, would ominously restrict the functioning of those networks. Apart from that, the association asserts that the U.S. regulator is disregarding strong precedents from the Second Circuit and Supreme Court stating transfers aboard are not within the reach of the SEC’s reach.
Blockchain Association Says SEC’s Interpretation of the Securities Laws Threatens Crypto Industry
Blockchain Association’s executive director, Kristin Smith, is of the view that the respective case could take into account broad-ranging consequences for the crypto industry’s future, emphasizing that the sole huge hazard to the swiftly advancing industry takes into account the security laws’ interpretations inferred by the SEC.
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