Over the past couple of weeks, Ripple, the US-based cross-border payment firm, has been garnering support from various sectors of the crypto community in its fight against the United States Securities and Exchange Commission (SEC) over the security status of XRP.
Ripple’s supporters are not limited to people within the crypto industry. Some of its customers in other financial sectors also have a lot of things against the SEC in the ongoing XRP lawsuit.
Read Also: Number of XRP Held by Ripple Goes Below 50% of Total Outstanding Supply for the First Time
Recently, the Blockchain Association, the unified voice of the crypto industry, announced that it has filed an amicus brief in support of Ripple.
Why the Blockchain Association Filed the Amicus Brief?
According to the blockchain-centered organization in a series of tweets a couple of hours ago, it decided to file the amicus brief to support the correct interpretation of Howey.
Blockchain Association tweeted, “Today we announced we filed an amicus brief supporting a correct interpretation of Howey in the SEC’s two-year legal battle against Ripple. A judge now has the opportunity to issue a substantive opinion on how Howey applies to digital assets.”
1/ Today we announced we filed an amicus brief supporting a correct interpretation of Howey in the SEC’s two-year legal battle against @Ripple.
A judge now has the opportunity to issue a substantive opinion on how Howey applies to digital assets.
Here's what's at stake🧵🧵🧵
— Blockchain Association (@BlockchainAssn) October 28, 2022
In the same thread of tweets, the organization stated that the SEC has chosen to target the crypto industry over the years via a “regulation by enforcement” pattern.
The blockchain-focused association said instead of working together with the members of the crypto industry members, the regulator chose to punish companies with unclear and messy justifications.
Read Also: Ripple CEO Brad Garlinghouse Slams the SEC in Defense of Ethereum, Says He Holds BTC, ETH, XRP
Blockchain Association noted:
“In December 2020, the SEC did just that to Ripple, suing the company for trading a digital currency without registering the token as a security, despite the SEC’s lack of guidance on the issue.
“Since 2019, the SEC has regulated how U.S. securities laws apply to digital assets through enforcement actions rather than guidance or rulemaking.
“Often, SEC enforcement actions end in one-sided settlement agreements rather than judicial opinions that factor in the unique facts presented to the court by both sides.
“Rather than settle, Ripple is fighting back through our judicial system. What this means is that a judge will soon rule on the issue.”
Stressing what is at stake if Howey is incorrectly interpreted, Blockchain Association said the landscape of assets falling under the SEC’s jurisdiction will expand beyond what the Supreme Court intended in Howey.
Read Also: Big Win For Ripple and XRP: Judge Torres Orders SEC to Release Hinman Emails
In conclusion, the organization said it has joined Ripple in the fight against the SEC with an amicus brief to support and safeguard the future of the rapidly growing crypto ecosystem.
“No regulatory agency should unilaterally regulate crypto with outdated standards. Instead, it’s time for Congress to define a clear regulatory framework to guide the industry,” Blockchain Association added.
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