A United States cryptocurrency advocacy group, the Digital Chamber of Commerce (CDC), Approval has been received from the Court for the Southern District of New York to participate as an amicus curiae in the United States Securities and Exchange Commission (SEC) case against Ripple Labs. “Friend of the Court” status allows them to assist the court by providing information, experience or knowledge.
Judge Annalisa Torres signed an order on September 21. CDC must submit its brief by September 26.
Describing his interest in the matter, The CDC legal team emphasized the far-reaching consequences of the court’s decision, namely whether the law applicable to securities transactions is properly different from the law that applies to secondary transactions.
The case was opened in 2020 after the SEC alleged that Ripple and its executives Brad Garlinghouse and Christian Larsen sold XRP as unregistered securities for over $1.38 billion. The outcome of this case can determine whether XRP is a security. If the judge rules in favor of the SEC, it could be the example the commission needs to take legal action against other crypto projects that sell tokens similar to Ripple.
In response to the CDC’s request for amicus curiae status, the SEC has asked the court to allow more time and pages if more amicus briefs are permitted. Ripple opposed the SEC lawsuit, calling it “another transparent attempt to further delay the resolution of the matter.”
In July, the SEC attempted to revoke XRP holders’ “AMC Curie” status, but Judge Annalisa Torres dismissed the petition.
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