The Chamber of Digital Commerce has released an impact and analysis report on the SEC v. Ripple ruling, highlighting the decision’s relevance to the industry.
The Chamber of Digital Commerce (CDC), an American advocacy group for crypto, has recently published an “impact and analysis” report on the SEC v. Ripple ruling.
In the report, CDC stated that Judge Torres’ ruling had established an important legal decision by effectively distinguishing between an investment contract and the underlying asset.
Judge Torres’ Ruling
CDC noted that the court analyzed Ripple’s XRP token distributions in three categories- institutional sales, programmatic sales, and other distributions.
Per CDC, US District Judge Analisa Torres examined the relevant undisputed facts while applying the Howey test to each category.
The move helped the judge determine whether Ripple’s XRP token distributions constitute an offer and sale of investment contracts.
Notably, Judge Torres found Ripple’s direct past XRP sales to institutional clients to be securities. However, the court ruled that Ripple’s programmatic sales and other XRP distributions were not securities transactions.
Chamber of Digital Commerce Reacts
Reacting, CDC said it is pleased that the court’s interpretation of the legal classification of digital assets aligns with its arguments in the amicus brief filed in the case.
It is worth noting that CDC was among the entities that filed an amicus brief in support of Ripple. As reported, CDC focused on how the case could set a precedent for future legal battles.
Perianne Boring, CDC’s founder and CEO, said:
“This case is a big milestone in the process of setting clear and consistent sets of rules for our industry, and we are also encouraged by the legislation also in play.”
Boring said the digital asset industry deserves a level playing field, adding that the group will continue to advocate for sound policy that promotes US leadership in the digital economy.
Despite Judge Torres’ ruling paving the way for sensible crypto regulations, CDC said regulatory clarity for crypto must be achieved through effective legislation by Congress.
The blockchain advocacy group acknowledged that several blockchain and digital asset regulatory bills have been introduced before the House and Senate. It hopes that these bills will go through the relevant legislative process.
However, it believes the chances of enactment of the bills are slim based on the constraints of the legislative calendar.
“The Chamber will continue to advocate for legislation that creates a clear and comprehensive legal framework for these technologies. Just as in our SEC vs. Ripple Brief, we will continue to work toward a clear route for firms to launch digital asset products, prioritizing both investor protection and innovation,” it concluded.