{"id":9277,"date":"2025-01-23T13:01:33","date_gmt":"2025-01-23T13:01:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=9277"},"modified":"2025-01-23T13:01:33","modified_gmt":"2025-01-23T13:01:33","slug":"ripple-vs-sec-case-sees-unexpected-action-with-new-amicus-filing","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=9277","title":{"rendered":"Ripple Vs. SEC Case Sees Unexpected Action With New Amicus Filing"},"content":{"rendered":"
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The legal dispute between Ripple Labs, Inc. and the US Securities and Exchange Commission (SEC) witnessed a surprising development as Better Markets, Inc., a prominent nonprofit dedicated to promoting public interest in financial markets, filed an amicus curiae brief on January 22. This latest submission to the United States Court of Appeals for the Second Circuit vehemently supports the SEC\u2019s appeal<\/a> against a prior district court decision, which narrowly defined the term \u201cinvestment contract\u201d and its applicability to XRP.<\/p>\n

In the brief, Better Markets criticizes the district court\u2019s interpretation of the Howey test, traditionally used to determine whether a transaction qualifies as an investment contract and thus a security. According to Better Markets, the lower court\u2019s ruling improperly excluded XRP tokens sold through secondary markets<\/a> from securities regulation, focusing narrowly on the direct purchase from the issuer as a criterion for classification.<\/p>\n

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#XRPCommunity<\/a> #SECGov<\/a> v. #Ripple<\/a> #XRP<\/a> @Ripple<\/a> Better Markets Inc. has filed an Amicus Brief in Support of the @SECGov<\/a>.https:\/\/t.co\/cu8lTLBqtM<\/a><\/p>\n

\u2014 James K. Filan \"\ud83c\uddfa\ud83c\uddf8\"\"\ud83c\uddee\ud83c\uddea\" (@FilanLaw) January 22, 2025<\/a><\/p>\n<\/blockquote>\n

A Last Call Against Ripple And XRP<\/h2>\n

The brief from Better Markets asserts, \u201cThe district court dramatically narrowed the definition of an \u2018investment contract,\u2019 removing a vast number of crypto offerings and potentially many other investments from the reach of the securities laws.\u201d They argue that this interpretation contradicts longstanding legal principles that aim to adapt to evolving financial practices and protect investors from emerging risks.<\/p>\n

Highlighting a critical error, the brief points out, \u201cThe court\u2019s ruling on the status of these secondary sales or \u2018Programmatic\u2019 transactions under Howey was erroneous.\u201d Better Markets emphasizes that the nature of an investor\u2019s acquisition does not change the fundamental expectation of profits derived from the efforts of others, a cornerstone of the Howey test.<\/p>\n

Better Markets challenges the district court\u2019s understanding of the economic realities surrounding Ripple\u2019s token sales, particularly the influence of Ripple\u2019s marketing and promotional efforts on investor expectations. The brief notes, \u201cRipple conducted a sales campaign through a wide variety of primers, brochures, market reports, public interviews, press conferences, and social media platforms\u2026Most were publicly disseminated or publicly available.\u201d<\/p>\n

The organization also criticizes the district court\u2019s assumption about the sophistication of retail investors, stating, \u201cThe district court\u2019s dim view of retail investors ignores modern day economic realities\u2026Many retail investors are exposed to new investment offerings and trends through social media platforms that promoters increasingly rely on to attract investors\u2019 funds.\u201d<\/p>\n

The brief starkly warns of the implications for investor protection if the district court\u2019s decision stands, highlighting the potential for widespread predation in the crypto securities market, which would disproportionately affect less sophisticated retail investors. Better Markets argues, \u201cWithout jurisdiction over these types of securities, the SEC will lose its ability to protect these two classes of investors\u2014those who trade on exchanges and those who lack sophistication\u2014from the widespread predations in the crypto securities markets.\u201d<\/p>\n

However, it is highly questionable whether the letter will have any significance at all. Mark Uyeda\u2019s recent appointment<\/a> as the acting Chair of the US Securities and Exchange Commission (SEC) has sparked speculation about a potential resolution to the SEC\u2019s lawsuit against Ripple under Uyeda\u2019s interim leadership.<\/p>\n

Notably, the SEC has scheduled a closed-door meeting under Uyeda\u2019s leadership for today, January 23 which further fueled speculation on the future of Ripple\u2019s legal case. Rumors suggest that the SEC\u2019s upcoming meetings could address settlement possibilities, potentially impacting Ripple\u2019s legal trajectory.<\/p>\n

At press time, XRP traded at $3.14.<\/p>\n

\"XRP<\/div>\n","protected":false},"excerpt":{"rendered":"

The legal dispute between Ripple Labs, Inc. and the US Securities and Exchange Commission (SEC) witnessed a surprising development as Better Markets, Inc., a prominent nonprofit dedicated to promoting public interest in financial markets, filed an amicus curiae brief on January 22. This latest submission to the United States Court of Appeals for the Second […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-9277","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9277","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9277"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9277\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9277"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9277"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9277"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}