Blockchain News

Jake Chervinsky of the Blockchain Association explains why the SEC is mistaken about the law

Blockchain

The views of the U.S. SEC are “wrong as a matter of law and policy,” according to Jake Chervinsky, who is the Executive Vice President and Head of Policy at the Blockchain Association, an Advisor at Variant Fund, and a Board Member at the DeFi Education Fund, on Friday (October 28).

You might recall that the SEC stated on December 22, 2020 that it had filed a lawsuit against Ripple Labs Inc. and two of its executives, who are also significant security holders, charging that they raised over $1.3 billion through an ongoing, unregistered issuance of digital asset securities.

In support of a proper reading of Howey in the SEC’s continuing litigation against Ripple, the Washington, D.C.-based Blockchain Association (which represents “the renowned leaders of the US blockchain and cryptocurrency sector”) submitted an amicus brief yesterday.

Blockchain Association claimed in a press release that this case, which is just one in a long line of SEC efforts to regulate by enforcement, highlights the SEC’s efforts to cement and legitimize its overly broad interpretation of the Howey test and that a ruling that adopts the SEC’s view of the law would expand the landscape of assets that are considered securities in a manner contrary to the Supreme Court’s intent in Howey.

Chervinsky claimed in a conversation on Twitter yesterday that the 30-page brief from the Blockchain Association explains in great detail why the SEC’s opinions “are wrong as a matter of law and policy.”

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