Ripple vs. SEC: Better Markets Claps Back, Wants XRP Ruling Reversed
Better Markets, a pro-regulation group, has filed an amicus brief in the SEC vs. Ripple case.
They are upset with U.S. District Judge Analisa Torres’ July 2023 ruling that XRP’s programmatic sales on secondary markets are not securities.
In the brief, Better Markets says the court ignored the economics of XRP’s sales and Ripple’s marketing. They claim Ripple targeted retail investors and used their expectation of profits from Ripple’s efforts.
This comes after speculation of a settlement with the new administration. Ripple’s CEO Brad Garlinghouse and CLO Stuart Alderoty met with President Donald Trump recently and many are hoping for a resolution to the 4 year old SEC vs Ripple lawsuit.Risks Highlighted by Better Markets
Better Markets points out the risks of the ruling for retail investors. The brief says the decision takes away investor protection by limiting the SEC’s reach on digital assets.
Better Markets says:
Investor Risk: Retail investors will be more vulnerable to fraud and abuse in the high risk crypto market.
Jurisdiction: The ruling limits the SEC’s ability to regulate crypto on secondary trading platforms.
Narrow Definition: The court’s investment contract definition deviates from the Howey Test and creates uncertainty for crypto asset classification.
They want the district court to reverse the ruling and for a stronger regulatory framework for the crypto market.
What’s Next for the SEC vs. Ripple Case?
The SEC vs Ripple case is a big deal for the crypto industry. XRP is still a hot button issue as regulatory clarity is nowhere.
Better Markets’ brief gets at the bigger picture of the ruling and says without enough regulation, crypto investors are at risk. They want to relook at the July 2023 ruling to protect Main Street investors and the market.
As speculation about a settlement grows, the SEC and Ripple await further court proceedings. Meanwhile, industry observers closely monitor the case, as its outcome could set a precedent for how digital assets are regulated in the U.S.
