Blockchain Association stands with the American crypto economy through amicus brief in SEC enforcement action against Ripple
Washington, D.C. (Oct. 28, 2022) – Blockchain Association announced today that it has filed an amicus brief in the U.S. Securities and Exchanges Commission’s (SEC) lawsuit against Ripple. This case, which is just one in a long line of SEC efforts to regulate by enforcement, highlights the SEC’s efforts to cement and legitimize its overly broad interpretation of the Howey test. A ruling that adopts the SEC’s view of the law would expand the landscape of assets that are considered securities in a manner contrary to the Supreme Court’s intent in Howey.
The following statement is attributed to Kristin Smith, Executive Director of Blockchain Association:
“The SEC’s broad, haphazard interpretations of the securities laws currently stand as the single greatest threat to the future of this rapidly growing industry. By erratically applying these outdated standards to a modern and innovative technology, the SEC continues its “regulation by enforcement” pattern, punishing crypto companies with little justification or warning.
This is exactly the case with Ripple, which the SEC targeted nearly two years ago in an enforcement action alleging that the crypto company had failed to register a digital token as a security. The SEC must follow the law, they cannot impose their draconian view on the entire crypto ecosystem through an enforcement action.
Ripple’s decision to fight this case in court provides an opportunity for the industry to push back against the SEC’s regulation by enforcement agenda and open the door to modernized standards for the industry.”