Members of the XRP community have been reacting to reports of two entities filing briefs supporting the SEC against Ripple.
It is noteworthy that the two entities requested permission to file amicus briefs in support of the Securities and Exchange Commission (SEC) in its ongoing legal battle against Ripple.
The New Sports Economy Institute (NSEI) and InvestReady are the entities seeking to file amicus briefs supporting the SEC in the ongoing lawsuit.
NSEI noted in its amicus brief that it does not operate in the cryptocurrency industry. However, the association’s interest in the lawsuit stems from its commitment to fostering an environment where financial innovations are respected to the extent that it is transparent and supports the public interest.
NSEI said it intends to provide the court with a novel and unique perspective into the suit by identifying key aspects of cryptocurrencies in contrast with traditional financial instruments.
The New Sports Economy Institute asserted that cryptos are assets that do not generate cash flow, adding that people can only trade the nascent assets and not invest in them. NSEI continued that the Securities Act of 1933, alongside the Howey test, “should be contextualized against the backdrop of the financial instruments that were being used at the time.”
On the other hand, InvestReady noted in its brief that the lack of investor protection in the crypto market had affected the United States online fundraising market.
“We want to make sure the voices of those trying to follow the rules set forth are heard and not drowned out by many of the crypto-boom-fueled that jumped on the bandwagon to submit their briefs,” it added.
InvestorReady said the market had become corrupt outside of regulatory scrutiny, adding that it does not need another “carve out” of firms that put investors’ funds at risk.
XRP Enthusiasts React
The briefs have continued to spark reactions in the crypto community as members of the XRP community take turns scrutinizing the briefs.
Famous U.S. Attorney Says Amicus Brief Filed In Support Of SEC Against Ripple Is “A Research Paper”
Attorney Jeremy Hogan, a partner at Hogan & Hogan P.A, was among those who reacted to the recent briefs filed by the entities in support of the SEC. He spotted an issue with the amicus brief filed by NSEI, admitting that the company does not operate in the cryptocurrency industry.
Attorney Hogan was concerned about the unique perspective a non-crypto player would bring to the lawsuit.
“This is more a research paper than an amicus brief,” attorney Hogan said.
NSEI files an Amicus Brief in support of the SEC.
NEIS admits that it "…does not operate in the crypto industry."
— Jeremy Hogan (@attorneyjeremy1) November 11, 2022
Furthermore, the founder of Digital Perspectives also took time to react to the amicus briefs filed by InvestReady in support of the SEC.
“New Amicus Brief Filing in SEC vs. Ripple supports XRP as a security. A “Ripple Decentralization Test”?
Meanwhile, the recent briefs filed by NSEI and InvestorReady mark the first support the SEC has received in its legal battle against the leading blockchain company. As reported, a dozen entities have filed briefs supporting Ripple against the SEC.