Blockchain News

A lobbying group for cryptocurrencies wants to comment on the SEC vs. Ripple XRP case

The Securities and Exchange Commission and Ripple Labs are battling each other, and the cryptocurrency advocacy group Chamber of Digital Commerce (CDC) has asked to join the case as an amicus curiae (Latin meaning friend of the court).

On Wednesday, CDC submitted a number of documents to the Southern District of New York’s district court, among them a motion for permission to submit an amicus curiae brief.

In a separate statement, CDC said that although the brief does not express an opinion on whether or not Ripple’s XRP sales constitute securities transactions, it “makes the court aware that no federal law or regulation governs the legal characterization of a digital asset recorded on a blockchain,” lays out the pertinent legal precedent for the initial offering of digital assets.

A person or group who isn’t a party to the case but wants to petition the court for permission to submit a brief in an effort to influence the court’s judgment would often file an amicus brief (short for amicus curiae briefs).

The SEC filed a complaint against Ripple in December 2020, claiming that the company sold over US$1.38 billion worth of XRP, the native coin of the XRP Ledger developed by Ripple Labs, in an unregistered securities offering. Additionally listed as co-defendants by the SEC for allegedly aiding and abetting Ripple’s crimes were the CEO Brad Garlinghouse and executive chairman Chris Larsen.

A tweet from defense attorney James K. Filan revealed that on Monday, District Judge Analisa Torres approved the SEC and Ripple’s joint letter outlining schedules for redactions pertaining to sealing issues. This action is widely viewed as an effort from both parties to expedite the resolution of the lawsuit.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.