The Blockchain Association advocacy group has published an expert opinion in support of Ripple amid an ongoing legal battle with the US Securities and Exchange Commission (SEC).
In its advisory opinion to the court, the Blockchain Association said that the regulator’s lawsuit against Ripple is only part of the SEC’s effort to enforce regulation of the cryptocurrency industry. In doing so, the Commission seeks to consolidate and legitimize its overly broad interpretation of the Howey test, which determines which assets qualify as investment contracts.
Members of the Blockchain Association explained why the views of the SEC and its chairman Gary Gensler on US securities laws can be devastating for cryptocurrencies. Blockchain technology is used to store data and track supply chains, and crypto assets that operate on its basis can be used to pay for goods and services, as well as to transfer intellectual property rights. The Blockchain Association believes that applying securities laws to such crypto assets, regardless of the Howey test, would significantly limit blockchain adoption.
The association also argues that the SEC is ignoring Supreme Court and Second Circuit Court of Appeals precedents that make blockchain transactions outside the SEC’s authority. The blockchain industry is global in nature, unlike federal securities laws, which are limited in scope.
“The SEC and Ripple case could have far-reaching implications for the future of digital assets. The way the SEC interprets securities laws poses a threat to a rapidly growing industry. The SEC indiscriminately applies outdated standards to modern and innovative technologies, unfairly penalizing crypto companies without warning. Ripple’s opposition to the regulator will create modernized standards for the industry,” said Kristin Smith, Executive Director of the Blockchain Association.
Recall that in 2020, the Blockchain Association also supported the Telegram company, which the SEC accused of offering unregistered securities. However, this tense trial ended sadly for the company – Telegram founder Pavel Durov was forced to stop working on the Telegram Open Network (TON) platform.
Source: Bits
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