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In the dispute between Ripple and the U.S. Securities and Exchange Commission (SEC), the Blockchain Association submitted an amicus brief. A party can use the motion to provide additional evidence in support of the defendant, in this instance, the payment company, to the court.
The Commission filed a lawsuit against Ripple at the end of 2020 for allegedly offering XRP, an unregistered security. The case has been crucial in establishing the regulator’s position regarding the cryptocurrency industry. In the years to come, the sector and related businesses may be impacted by its outcome.
In this way, the Blockchain Association decided to oppose the SEC and Chairman Gary Gensler’s administration. According to the organization’s press release, the Commission’s action was illegal in the United States.
According to the release, the regulator is attempting to regulate through “enforcement” as opposed to guidance. The previous methodology is seen as antagonistic against organizations like Ripple and numerous other crypto organizations confronting examining or legitimate activities from the controller.
The Blockchain Association’s Executive Director, Kristin Smith, described the SEC’s interpretation of current U.S. securities laws as haphazard. According to Smith, the Commission is attempting to implement an out-of-date interpretation of securities law in a cutting-edge industry. Ripple and others are punished as a result.
Smith continued that this is exactly the situation with Ripple, which was the target of an enforcement action by the SEC nearly two years ago for failing to register a digital token as a security.
The SEC cannot impose its extreme views on the crypto ecosystem as a whole through enforcement actions; it must follow the law. In addition, Smith asserted that Ripple’s struggle with them presents an opportunity to challenge the regulator’s agenda. Additionally, the case may make it possible to update securities laws in the United States.
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The Blockchain Association’s Head of Policy, Jake Chervinsky, emphasized the group’s opposition to the SEC. Chervinsky asserted that the regulator is causing harm to crypto businesses and project investors.
The payment company presented evidence of their attempt to collaborate with the regulator in the case between Ripple and the SEC. When working on RippleNet in 2014, the company sought advice and direction from the Commission.
However, the Commission is said to have ignored their request and failed to declare XRP and any projects connected to Ripple as securities. Chervinsky stated that the regulator led by Gensler is assuming that their rules are clear to all actors in this way.
Those who do not meet their requirements are subjected to legal action. This behavior was referred to as regulation by enforcement, according to the Blockchain Association’s Head of Policy.
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