The Blockchain Association, a crypto advocacy organization based in the United States, has come out in favor of Ripple Labs amid its continuous legal fight with the Securities and Exchange Commission, asserting the case could be crucial to the future of the cryptocurrency market.
The advocacy group revealed in an Oct. 28 post that it will stand with the American crypto economy by submitting an amicus brief, also recognized as a friend of the court, in the SEC regulatory action against the firm.
The Howey Test is used to determine what is eligible as an investment contract and thus falls under the purview of US securities laws.
The group highlighted in their brief why they believe the SEC and Chairman Gary Gensler's views on securities laws might have devastating effects on the cryptocurrency space.
They argue that blockchain technologies have numerous applications in the cryptocurrency industry; tokens can be utilized to pay for goods and services, transfer rights to intellectual property track inventory, and serve a special aim in a given blockchain project.
The association also claims that the SEC is ignoring clear Supreme Court and Second Circuit precedents declaring that transactions offshore are beyond the SEC's authority.
Kristin Smith, executive director of the Blockchain Association, appears to believe this case could have far-reaching implications for the future of cryptocurrency, describing their viewpoints of securities act as the single largest danger to the sector's future.
According to the group, the case allows the industry to push back against everything they see as the SEC's regulatory-by-enforcement agenda, potentially opening the door to developed and modern industry standards.
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