Cryptocurrency Lobby Group Files Friend of Court Letter in XRP Lawsuit – 24/7 Wall St. | Jewelry Dukan

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The Chamber of Digital Commerce (CDC), an American advocacy group promoting blockchain technology, has filed an amicus curiae (literally “friend of the court”) letter in the US Securities and Exchange Commission (SEC) lawsuit against Ripple Labs. The move came after Judge Analisa Torres granted the cryptocurrency lobby group a request for permission to file the brief.

CDC files amicus curiae brief

On Wednesday, Judge Analisa Torres of the US District Court for the Southern District of New York granted CDC permission to file an amicus curiae brief. The cryptocurrency lobby group then filed the brief on the same day.

In the brief, CDC said that no federal law currently governs the legal status of blockchain-based digital assets. The US has expressed flexibility in modern applications, but “a certain rigidity is evident when decades-old laws are confronted with some of the more unique aspects of blockchain technology,” the company said.

The SEC Ripple case includes an analysis of the factors set for the initial offering in 1946. The court is examining whether Ripple’s offering of XRP tokens meets the four-step test under Howey. However, CDD said that “legal precedent is limited to Howey’s application to initial offerings of digital assets.”

“On the other hand, if this court decides to consider the status of the underlying asset in subsequent sales after the initial offering, we would like to remind the court that there is no precedent on the subject.” This lack of clarity has had a significant chilling effect on both US digital asset network developers and potential market entrants.”

An amicus curia is a person or organization not involved in a legal case but authorized to assist a court by offering information, expertise or intelligence related to the issues of the case. Simply put, it is a person or group who is not involved in an action but has a strong interest in the matter.

In a press release last week, CDC said the SEC Ripple case had the power to “shape the legal framework and rules of the road for the digital asset industry.” The lobby group added that it would not comment on this in its letter, but would emphasize “that no federal law or regulation governs the legal characterization of a digital asset recorded on a blockchain.”

An amicus curiae can indirectly influence a court’s decision. It can propose legal positions and examine political issues by pointing out the consequences of a court’s action or inaction.

SEC and Ripple demand immediate decision

The SEC initially sued Ripple in December 2020 over allegations that the company, CEO Brad Garlinghouse and Executive Chairman Chris Larsen were involved in illegal securities offerings by selling XRP. On the other hand, Ripple argues that XRP should be treated as a virtual currency rather than an investment contract.

Nonetheless, the SEC and Ripple have both filed summary judgment motions in the Southern District of New York, asking District Judge Torres to issue an immediate ruling. Both parties have argued that the court has the necessary documents to reach a verdict.

Meanwhile, Ripple’s native token XRP has rallied in the news. The token is currently trading around $0.433743, up 7.7% over the past 24 hours. In comparison, the broader crypto market is either flat or in the red over the past day.

This article originally appeared on The Tokenist

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