Members of the XRP community are reacting to a new development about the lawsuit between the US Securities and Exchange Commission (SEC) and Ripple. The community was upset when the two organizations gave a briefing in support of the SEC. Here are the details…
New development in Ripple case: Briefings given
It was noteworthy that the two organizations requested permission to present expert briefings in support of the SEC in its ongoing legal battle against Ripple. The New Sports Economy Institute (NSEI) and InvestReady were the organizations that wanted to present the briefings supporting the SEC in the ongoing litigation. NSEI stated in its briefing that it does not operate in the cryptocurrency industry. He noted, however, that the agency’s interest in the cause stems from its commitment to foster an environment where financial innovation is respected to the extent that it is transparent and promotes the public interest.
NSEI highlighted the fundamental aspects of cryptocurrencies as opposed to traditional financial instruments. He said this was intended to give the court a new and unique perspective on the case. NSEI has argued that cryptos are non-cash-flowing assets. He added that people can only buy and sell emerging assets and not invest in them. The NSEI maintained that alongside the Howey test, the Securities Act of 1933 “should remain in context against the background of the financial instruments used at the time.”
What was in the InvestReady briefing?
On the other hand, InvestReady stated in its summary that the lack of investor protection in the crypto market is affecting the online market in the US. “We want to make sure that the voices of those who try to abide by the rules are heard,” he said. He also pointed out that people should not have problems due to the crypto boom. InvestorReady noted that the market has degenerated outside of regulatory scrutiny. He added that firms that put investors’ funds at risk do not need another “formatting”.
Reaction from the XRP community
As members of the XRP community took turns reviewing the digests, the digests continued to spark backlash in the crypto community. Attorney Jeremy Hogan said that this briefing in support of the SEC against Ripple is “An Investigation Document.” Attorney Jeremy Hogan, a partner of Hogan & Hogan P.A., reacted to recent summaries submitted by organizations supporting the SEC. He identified a problem with his briefing filed by NSEI and pointed out that the company does not operate in the cryptocurrency sector.
Attorney Hogan was concerned about the unique perspective a non-crypto player would bring to the case. “This is more of a research paper than an amicus curiae briefing,” said attorney Hogan. Also, the founder of Digital Perspectives reacted to the briefings presented by InvestReady in support of the SEC. “Is Ripple decentralized?” turned out to be a test.
Meanwhile, the latest summaries submitted by NSEI and InvestorReady mark the SEC’s initial support in its legal battle against the leading blockchain company. As we reported on Kriptokoin.com, a dozen organizations held briefings against the SEC in support of Ripple. The current collapse of cryptocurrencies may be behind the briefing now against the blockchain company.