While the SEC-Ripple case continues with the SEC filing its detailed appeal, a new development has occurred. While the cryptocurrency industry supports Ripple against the SEC, support also came to the SEC. Accordingly, the non-profit organization Better Markets announced that it supports the SEC in the XRP case. Better Markets has filed an amicus curiae brief in support of the SEC in its ongoing lawsuit against Ripple. In its petition, Better Markets argued that Ripple’s retail XRP sales fall within the scope of securities transactions and that the district court’s previous decision should be overturned and vacated. Better Markets emphasized that when investors purchase XRP from their trading platform, the security nature of XRP and the fact that XRP is a security does not change. Better Markets also argued that the district court ignored the economic realities of Ripple issuing and selling XRP tokens and the fact that investors understood the connection between Ripple's actions and their profit expectations. At this point, Better Markets is requesting that the district court overturn the ruling that XRP sales to retail investors on exchanges do not constitute investment contracts. Better Markets, known for its anti-cryptocurrency stance, previously opposed the approval of a spot Bitcoin (BTC) ETF in a separate legal filing. What Happened? In 2020, the SEC accused Ripple of selling XRP, which it claimed was an unregistered security, and raising $1.3 billion through those sales. In the long-running case, in 2023, U.S. District Court Judge Analisa Torres of the Southern District of New York ruled that Ripple’s so-called retail sales of XRP did not violate securities laws. However, she ruled that other direct sales of XRP tokens to institutional investors were securities. Judge Torres also ordered Ripple to pay a $125 million fine. The SEC recently filed a detailed appeal against a district court ruling regarding Ripple’s XRP sales. In the filing, the SEC argued that all transactions involving XRP purchased by retail investors through cryptocurrency platforms are securities under the Howey Test. Related News: New Development in Ripple - SEC Case! SEC Uses Its Last Trump Card for XRP! *This is not investment advice. Continue Reading: New Development in Ripple – SEC Case! The Organization That Opposed Spot Bitcoin ETFs Now Supports the SEC!
