Blockchain Association has drummed its support for payment company Ripple Labs in itstussle with the United States SEC. According to the group, the case could become integral for the crypto sector. This means that the final decision on the lawsuit would either make or mar digital assets and the industry. Some days ago, the group claimed it would file an amicus brief at the court.
Blockchain Association wants to file an amicus brief
In the post by the Blockchain Association, the amicus brief will enable the group to provide in-depth information that might help Ripple in its ongoing lawsuit. The lawsuit, which is almost close to its second anniversary, started around December 2020. During the period, the company, as well as CEO Brad Garlinghouse and founder Chris Larsen were sued by the regulatory agency. The offense was that both individuals used the company to raise about $1.3 billion by selling unregistered securities in XRP.
The group claimed that the agency has been trying to stamp its another interpretation of the test during the tussle. This means that the legal authority wants to enforce its regulation on the payments company by force. The test is the only determinant of the contract, which is then used to evaluate what falls under the securities law in the country.
The group wants a pushback against SEC’s ancient rules
The group’s report highlights the various consequences that the market could witness if this interpretation of the law is allowed to stand. The group also positioned that blockchain has various uses across the crypto market besides traditional trading. The Blockchain Association mentioned that if the law is used on the assets through their version of the Howey test, it will disrupt how these assets function.
According to the Blockchain Association, the SEC is going against the clear rule of the court by going after Ripple. An executive of the group mentioned that using this outdated model to decide on new technologies is a clear tactic for stifling the growth of crypto firms without little or no information. The executive also claimed that this case provides the right opportunity for companies in the crypto sector to join hands and push back against these enforcements by the SEC. This way, the executive believes they could open up a path to bring modernized laws into the crypto sector.