The Blockchain Association supports Ripple’s efforts against the SEC
- The SEC sued Ripple for the alleged offering of an unregistered security
- XRP price at the time of writing – $0.4651
- The commission failed to classify XRP as a security
In the dispute between Ripple and the US Securities and Exchange Commission (SEC), the Blockchain Association filed an amicus brief. A party can use the motion to present additional evidence in support of the defendant, in this case the payment company, to the court.
The commission filed a lawsuit against Ripple in late 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 affected by the outcome.
The SEC filed a lawsuit against Ripple in 2020
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 seeks to regulate through “enforcement” as opposed to guidance. The previous methodology is seen as antagonistic to organizations like Ripple and many other crypto organizations that confront investigative or legitimate activities of the controller.
The Blockchain Association’s executive director, Kristin Smith, described the SEC’s interpretation of current US securities laws as haphazard. According to Smith, the commission is trying to implement an outdated interpretation of securities law in a pioneering industry. Ripple and others are penalized 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 argued that Ripple’s battle with them presents an opportunity to challenge the regulator’s agenda. In addition, the case may make it possible to update securities legislation in the United States.
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The Gensler-led regulator assumes its rules are clear
The Blockchain Association’s head of policy, Jake Chervinsky, emphasized the group’s opposition to the SEC. Chervinsky argued that the regulator is causing harm to crypto businesses and project investors.
The payment company presented evidence of its efforts to cooperate with the regulator in the case between Ripple and the SEC. When working with RippleNet in 2014, the company sought advice and guidance from the Commission.
However, the commission reportedly ignored their request and failed to declare XRP and any projects related to Ripple as securities. Chervinsky stated that the regulator led by Gensler assumes that their rules are clear to all actors in this way.
Those who do not meet their requirements are subject to legal action. This behavior was referred to as regulation by enforcement, according to the Blockchain Association’s head of policy.
