Washington DC based crypto lobbying organization The Blockchain Association has filed a permission to join Ripple v SEC as a friend and help the blockchain and crypto company in its defense against the US Securities and Exchange Commission (SEC).
SEC and Ripple have been in a legal battle since 2020 when the financial regulator alleged that XRP, the cryptocurrency offered by Ripple, was sold as an unregistered security, and violated state laws.
The regulator went after Ripple’s top management, but the company’s chief executive officer Brad Garlinghouse immediately returned from abroad when the charges were brought against him and the company and mounted a fierce defense denying wrongdoing.
Now, The Blockchain Association is putting forward arguments to back Ripple Labs’ case against SEC.
“The securities laws do not contemplate how an asset that may have been issued as a security can exist when it is no longer attached to any form of investment contract, a crucial consideration when attempting to apply Howey”, the Association said in a statement.
The Blockchain Association is not the only organization to be looking out for Ripples Labs. On Friday, Investor Choice Advocates Network and SpendTheBits Inc. filed their respective amicus briefs to offer their support against SEC.
According to these organizations, SEC often used vague phrasing and refrained from making any clear-cut statements about what constituted securities when it pertained to digital assets.
This ambiguity is mostly because SEC itself does not want to make a faux pas, but the organization has been happy to prosecute others for their perceived failings.
Ripple has enjoyed several successes against SEC in the legal saga, including access to “privileged documents”, that can prove that the regulator is making frivolous arguments.
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