Seven Ripple allies officially file amicus briefs against the SEC after Judge Torres’ approval.
Shortly after U.S. District Judge Analisa Torres granted the motions of 11 entities to file amicus curiae briefs in the Ripple vs. SEC lawsuit, some companies and associations officially filed their briefs.
As of today, seven out of the 11 entities have officially filed their respective amicus briefs, according to former federal prosecutor James K. Filan.
Attorney Deaton’s Brief On Behalf of XRP Investors.
Yesterday, Attorney John Deaton, on behalf of XRP holders, officially filed an amicus curiae brief in opposition to the SEC’s motion for summary judgment that “a purchase of XRP is an investment in a common enterprise with other XRP holders and with Ripple.”
Attorney Deaton noted in the brief that if the SEC had limited its theory to specific XRP sales offered by Ripple, there would not have been a need to file an amicus brief on behalf of investors. He added that the SEC’s goal in the litigation is to expand its regulatory jurisdiction beyond Ripple’s XRP sales to regulate secondary markets.
“More alarming, the SEC asks this Court to grant summary judgment in favor of the SEC, effectively giving the SEC jurisdiction over non-parties to this litigation, consisting of an entirely digital asset ecosystem,” attorney Deaton’s brief read.
The brief indicated that if the SEC is successful in its quest to categorize all XRP sales as a violation of U.S. securities laws, the court would have indirectly given the SEC the authority to regulate other non-parties, including XRP users and holders, vendors, crypto exchanges, as well as developers.
Attorney Deaton added that if a ruling is granted in the SEC’s favor, the agency would “use the enforcement action as a test case for expanding its jurisdictional reach, and millions of innocent holders suffer the harm.”
Aside from Deaton’s amicus briefs, six other entities filed their respective briefs yesterday supporting Ripple’s case against the Securities and Exchange Commission.
Coinbase Amicus Brief
As reported by TheCryptoBasic, Coinbase filed its amicus curiae brief in support of Ripple’s Fair Notice Defense. According to the San Francisco-based cryptocurrency exchange, the SEC has failed to provide clear regulations for the United States cryptocurrency industry. Coinbase asserted that without clear crypto rules, Ripple should be given the right to a fair notice defense. The exchange also noted that the securities act of 1930, which the SEC claims Ripple violated, was established without considering crypto tech. It can be recalled that Coinbase was prompted to delist XRP following the SEC’s lawsuit against Ripple, as the exchange feared the agency could sanction it for facilitating the trading of the crypto asset.
Blockchain Association Amicus Brief
The Blockchain Association has also officially filed an amicus curiae brief supporting Ripple against the SEC. According to the Blockchain Association, a court ruling in favor of the Securities and Exchange Commission could severely affect the entire blockchain industry. Notably, the SEC’s statements and claims throughout the Ripple lawsuit indicate that the agency views U.S. laws beyond the original investment contract application between investors and token issuers. It also added that the SEC’s broad interpretation of the United States securities laws “would have devastating effects on the space (and even outside the industry).”
Paradigm Operations Amicus Brief
Yesterday, leading crypto investment firm Paradigm Operations also filed its amicus brief supporting Ripple’s case. Paradigm Operations used its amicus curiae brief to shed light on a significant area that could impact the entire cryptocurrency market. Paradigm stated that the SEC’s rhetoric in the case goes beyond whether XRP sales violated U.S. securities laws.
“The SEC’s rhetoric goes further than its claims require or the law supports. It asserts that XRPtokens, and by extension many other crypto assets, are themselves securities,” Paradigm stated.