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Ripple Gets More And More Support Against SEC As Two More Companies Formally Files Amicus Briefs

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The court has approved the requests of two third parties to file amicus briefs in support of Ripple.


Judge Analisa Torres has granted SpendTheBits, and Investors Choice Advocates Network (ICAN) requests for leave to file amicus curiae briefs supporting Ripple in lawsuit against the SEC.

“The court has reviewed the requests by Philip Goldstein and ICAN, and SpendTheBIts Inc, for leave to file amicus briefs dated October 18, 2022 […] Accordingly, the request is granted,” excerpt of the court’s ruling.

 

Following the ruling, SpendTheBits and ICAN have officially filed their amicus briefs in support of Ripple.

SpendTheBits’ Amicus Brief

SpendTheBits, a crypto company based in Canada, disputed the SEC’s claims that XRP lacks utility and that the cryptocurrency is only purchased for speculative investment purposes. 

 

We dispute Such far-fetched assertions about open-source software code and completely disregard the hundreds of use cases created for XRP, unrelated to any of Ripple’s efforts,” SpendTheBits said.

SpendTheBits noted that it leveraged Ripple’s XRP Ledger (XRPL) to develop an application that enables users to transfer Bitcoin faster and at a relatively lower cost. 

“Users experienced long delays and unnecessary costs in transferring their Bitcoin on the BTC network…; Bitcoin transfers can be finalized in a matter of seconds using XRPL.” 

Since the app is based on XRPL, SpendTheBits said XRP is required for its operation. According to the firm, the app helps to burn a total of 0.00005 XRP via each transaction. 

SpendTheBits noted that it is based in Canada and has halted plans to expand into the U.S. due to the ongoing lawsuit between Ripple and the SEC. It also plans to launch in El Salvador because of its friendly cryptocurrency policies.

ICAN’s Amicus Brief

ICAN, a non-profit law firm representing defendants in various SEC litigations, stated that the securities regulator tends to expand its authority beyond its statutory limits. 

 

This brief aims to highlight why the SEC’s efforts to assert regulatory control over digital assets is an impermissible and unauthorized exercise of regulatory power and provides an analysis of the significant political and economic impact that broadening the SEC’s authority will have [on the entire crypto markets] in the absence of proper statutory authorization,” ICAN’s brief read. 

According to ICAN, the U.S. Congress only authorized the SEC to regulate a selected list of financial instruments such as stocks, bonds, and debentures. ICAN said digital assets are not on the list of financial instruments the SEC is mandated to regulate. 

However, the agency only seeks to regulate the crypto market by expanding the meaning of “investment contract” beyond the reasonable interpretation of the term.

Congress has explicitly authorized the SEC to regulate an enumerated list of financial instruments such as “stocks,” “bonds,” and “debentures.”

“Digital assets” is notably absent from that enumerated list. The SEC now seeks to regulate an entire industry by expanding one ambiguous term on that list, “investment contract,” beyond any reasonable interpretation of that term. This is a bridge too far. Congress never authorized the SEC to regulate digital assets; therefore, the Court should not infer that Congress would allow the SEC to do so herein in the absence of specific statutory authority.”

Blockchain Association Request to File Brief in Support of Ripple

Meanwhile, several enterprises have supported Ripple in the SEC’s lawsuit. In a tweet, Blockchain Association disclosed that they are the latest entity to file an amicus brief supporting Ripple against the SEC.

 

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Ammara
Ammarahttps://thecryptobasic.com/
Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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