Better Markets filed an amicus brief in the SEC vs. Ripple case, criticizing the court ruling for ignoring XRP’s economic realities and warning of investor risks.
Better Markets Challenges District Court’s Interpretation of Ripple’s XRP Sales
Better Markets, a financial reform advocacy organization, has filed an amicus brief in the ongoing SEC vs. Ripple case. The brief criticizes U.S. District Judge Analisa Torres‘ decision, claiming it ignored the “economic realities” of Ripple’s XRP token sale and failed to protect modern-day investors.
According to Better Markets, Ripple deliberately targeted retail investors by leveraging their “willingness to expect profits from Ripple’s efforts.” The group argues the court’s ruling has narrowed the definition of an investment contract under the Howey Test, leaving investors exposed to potential fraud and abuse in the volatile cryptocurrency market.
Concerns About Investor Protection and SEC Jurisdiction
Better Markets emphasized the need to reverse the district court’s ruling, particularly regarding programmatic sales of XRP on secondary platforms. The organization warns that denying the SEC jurisdiction over such crypto assets could limit its ability to safeguard retail and institutional investors.
In its Jan. 22 filing, the non-profit highlighted the consequences of the flawed reasoning behind the ruling, which it claims underestimated the sophistication levels of today’s investors. “Unless this Court reverses the district court on these issues, a huge number of everyday American investors will be far more vulnerable to fraud and abuse,” the brief states.
Ripple Case Raises Broader Implications for Cryptocurrency Regulation
This filing follows a belief among Ripple supporters that the longstanding SEC case may soon reach a conclusion under new government leadership. However, Better Markets views the ruling as a precedent that could weaken investor protections in the rapidly expanding cryptocurrency market.
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