Better Markets challenges Ripple ruling
Better Markets, a nonprofit organisation focused on enhancing financial market integrity, has filed an amicus brief supporting the U.S. Securities and Exchange Commission (SEC) in its ongoing legal battle with Ripple Labs.
The brief criticises the July 2023 ruling by U.S. District Judge Analisa Torres, which Better Markets argues failed to accurately assess the economic realities of Ripple’s XRP (CRYPTO:XRP) token sales.
According to Better Markets, the court's decision improperly narrowed the definition of an investment contract, potentially leaving many cryptocurrency offerings outside of securities regulation.
The organisation contends that Ripple specifically targeted retail investors, fostering profit expectations based on its marketing efforts.
In its filing, Better Markets expressed concern that the ruling could expose everyday American investors to increased risks of fraud and manipulation in the cryptocurrency market.
“If this Court does not reverse the district court on these issues. A huge number of everyday American investors will be far more vulnerable to fraud and abuse.” the brief warns.
The brief further asserts that denying SEC jurisdiction over crypto assets would hinder its ability to protect investors effectively.
Better Markets has a vested interest in this case, as it believes that the court's ruling could set a precedent affecting investor protections across various markets.
The backdrop of this legal dispute includes speculation about a potential resolution, especially following a reported meeting between Ripple CEO Brad Garlinghouse and then-President-elect Donald Trump.
While Ripple has seen significant gains in XRP's value since parts of its legal battle were resolved, the implications of Better Markets' brief could pose new challenges for its ongoing growth.
As the case progresses, the outcome may significantly influence regulatory clarity in the cryptocurrency sector and determine how digital assets are classified under U.S. law.
At the time of reporting, the XRP (XRP) price was $3.16.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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