SEC vs Ripple News: The Latest
In the latest SEC vs Ripple news, the Blockchain Association has come out in favour of Ripple Labs as it continues its legal battle with the Securities and Exchange Commission. The US crypto advocacy group argues that the case is critical to the future of the crypto sector.
SEC vs Ripple - Basis of Case
In a 28 October article, the advocacy organization said it would "stand" with the American crypto economy by filing a legal brief in the SEC enforcement case against Ripple.
The SEC said nearly two years ago that it would sue Ripple, former CEO Christian Larsen, and current CEO Brad Garlinghouse for allegedly generating $1.3 billion through unregistered securities transactions using XRP.
This case is just one in a long series of SEC efforts to regulate through enforcement," the organisation stated, highlighting its efforts to entrench and legitimise its broad interpretation of the Howey test.
The Howey Test decides what qualifies as an investment contract and hence what is subject to US securities laws.
Why is Blockchain Association involved in SEC vs Ripple?
The Blockchain Association explained in its brief why it believes the SEC and Chairman Gary Gensler's views on securities rules might have disastrous implications for the crypto sector.
It says that blockchain technologies have several applications in the cryptocurrency business; tokens may be used to pay for products and services, transfer intellectual property rights, maintain inventories, and serve a specific role in a particular blockchain project.
Applying securities rules to such tokens, whether or not via the lens of the Howey test, would severely limit their ability to function.
The group further alleges that the regulatory body is ignoring clear Supreme Court and Second Circuit decisions establishing that transactions offshore are outside its authority.
Blockchain Association hopes in SEC vs Ripple case
According to the Blockchain Association, the lawsuit allows the industry to push back against the "SEC's regulation by enforcement agenda" and perhaps open the way to upgraded industry standards.
Author: Emmanuel Baiden
7 years experience within the financial services sector most notably in Sales, Trading, research and writing articles within the crypto space. I have a bachelor's degree in International Business and a Master's in Investment and Risk Finance . I am also an associate member of the Chartered Institute for Securities and Investment.