Blockchain Association backs Ripple in response to SEC

The nonprofit Blockchain Association has backed Ripple in a lawsuit with the U.S. Securities and Exchange Commission (SEC).

The lobby group sent a letter to the court as an amicus curiae — “amicus curiae.”

In December 2020, the SEC indicted a fintech company, its co-founder Chris Larsen and CEO Brad Garlinghouse for selling unregistered securities in the form of XRP tokens.

According to the Blockchain Association, the court is about to rule on the case. The group fears it will support regulators. In this case, the list of crypto assets that fall under the definition of securities would expand, “contrary to the Supreme Court’s intent in Howey,” experts said.

“The SEC’s broad and casual interpretation of securities laws currently poses the greatest threat to the future of this rapidly growing industry. By indiscriminately applying outdated standards to modern and innovative technologies, the Commission continues its “passing Enforcement conducts a “regulatory” model, punishing cryptocurrency companies without much reason or warning,” said Kristin Smith, CEO of the Blockchain Association.

In her view, the court decision in favor of Ripple “will open the door to modernizing standards in the industry.”

Previously, the Blockchain Association also supported Grayscale Investments as an amicus curiae in a case against the U.S. Securities and Exchange Commission.

Recall that in September, LBRY CEO Jeremy Kaufman announced that the regulator wanted to “disrupt or destroy the cryptocurrency industry in the United States.”

Before that, the committee was criticized by billionaire Mark Cuban, while Ripple’s head Brad Garlinghouse accused the agency of using coercion rather than clear rules.

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Source of information: compiled from FORKLOG by 0x information.The copyright belongs to the author Роман Петров, and may not be reproduced without permission

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