financetom
Cryptocurrency
financetom
/
Cryptocurrency
/
Better Markets Files Amicus Brief Backing SEC in Ripple Case
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Better Markets Files Amicus Brief Backing SEC in Ripple Case
Jan 23, 2025 9:00 PM

Better Markets, a non-profit advocating for financial reform, has filed an Amicus brief supporting the U.S. Securities and Exchange Commission (SEC) in its ongoing legal battle with Ripple Labs.

The organization argues that a prior decision by the District Court for the Southern District of New York undermines investor protections.

Ripple’s Victory Under Scrutiny

In its brief, Better Markets claims that XRP qualifies as a security. The non-profit also asserted that the district court’s ruling weakened the Howey test, a cornerstone of U.S. securities laws, by narrowing the definition of “investment contracts.”

According to the organization, the court excluded many crypto transactions from regulations, potentially exposing investors to fraud. It claims that retail traders are at risk since the SEC now has a diminished capacity to protect less sophisticated investors from fraudulent schemes because of the court’s interpretation of the law.

Ripple won a partial victory against the SEC in a case the regulator brought against it, alleging the payments platform conducted an unregistered securities offering by selling XRP.

In that ruling, District Judge Analisa Torres declared the token was not a security when sold to retail investors on crypto exchanges. However, she found it violated securities laws when offered to institutional investors.

Legal Expert Dismisses Better Markets’ Action

Better Markets’ move comes just a week after the SEC formally appealed against Judge Torres’ ruling, asking the U.S. Court of Appeals for the Second Circuit to overturn it. While the agency called the judge’s decision “factually and legally” wrong, Ripple’s top attorney, Stuart Alderoty, described the appeal as “a rehash of already failed arguments.”

The brief has sparked reactions from legal experts and the crypto community at large. Some have pointed out ties between the Better Markets CEO Denis Kelleher and the Biden administration, where he was part of the transition team, alleging bias.

Lawyer Jeremy Hogan has criticized the organizations argument as lacking substance and failing to engage with the court’s finding.

“Better Markets Amicus Brief was hard to read. Not because I dont think this case will ever be ruled on by the appellate court, but because it COMPLETELY misses (or misconstrues?) what the Trial Judge ruled,” he said.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Cardano (ADA) Whale Activity Explodes to Level Not Seen Since Nov 2023
Cardano (ADA) Whale Activity Explodes to Level Not Seen Since Nov 2023
Apr 30, 2024
Cardano (ADA) witnessed a significant surge in whale transactions exceeding $100K on April 29th. The transactions on that day amounted to 1,776, marking the highest daily count since November 8th, 2023. Historically, such spikes in whale activity have correlated with potential price reversals, indicating possible shifts in market sentiment. However, this hasnt been the case so far as the market...
Aethir and Magic Eden Join Forces to Boost Web 3.0 Gaming
Aethir and Magic Eden Join Forces to Boost Web 3.0 Gaming
Apr 30, 2024
Aethir a distributed GPU cloud computing platform has announced teaming up with NFT giant Magic Eden to boost Web 3.0 gaming on a massive scale. The aim is to create a unified Web 3.0 gaming ecosystem by utilizing Aethir’s enterprise-grade GPU infrastructure and Magic Eden’s NFT platform. The latest initiative will also enable Magic Eden’s gaming partners to have access...
Disappointing Launch Day for Hong Kong’s Bitcoin, Ethereum ETFs as BTC Slumps Below $61K
Disappointing Launch Day for Hong Kong’s Bitcoin, Ethereum ETFs as BTC Slumps Below $61K
Apr 30, 2024
Hong Kongs debut of six new spot Bitcoin and Ethereum exchange-traded funds (ETFs) marked a trading volume of HK$87.5 million ($11.2 million). This volume was significantly below the inaugural trading of 11 spot Bitcoin ETFs in the U.S., which achieved a staggering $4.6 billion. Meanwhile, bitcoins price dumped below $61,000, having experienced a 2.3% decline within the last 24 hours...
Dow and Nasdaq 100 rise but Nikkei 225 hits a speed bump
Dow and Nasdaq 100 rise but Nikkei 225 hits a speed bump
Apr 30, 2024
Dow Jones, Nasdaq 100, Nikkei 225 Analysis and Charts ​​​Dow back above 100-day moving average ​The index continues to recover from last week’s low and managed to move above Friday’s high in Monday’s trading. ​Additional gains target last week’s high around 38,600, and then on to the 50-day simple moving average (SMA), currently 38,780. Beyond this lies 39,000, and then...
Copyright 2023-2025 - www.financetom.com All Rights Reserved