Better Markets Files an Amicus Brief & Backs SEC

Better Markets, a non-profit organization that advocates for investor protection by making the financial markets fair, secure and transparent, has filed an amicus curiae brief that supports the Securities Exchange Commission (SEC) in its ongoing legal battle with Ripple Labs, Inc.

What is Amicus Curiae Brief?

Amicus curiae is a Latin phrase that means “friend of the court”. This documents filed with the court provides additional information, analysis, or perspective on the issues being considered. The main aim of this document is to help the court make decisions based on additional information that may have not been available to the parties directly involved in the case.

Why did Better Market File a Brief in Favor of the SEC?

In the brief, Better Markets has argued that the court’s decision to not consider XRP as a security makes it difficult for them and the SEC to protect investors from financial losses. Also, according to the non-profit organization, the interpretation of the Howey test was narrow and the court failed to consider Ripple‘s promotional efforts which included social media campaigns, public endorsements that led the investor to believe and expect profits. The main goal of these promotional efforts was to boost the price of the XRP token.

According to filed brief, the organization is emphasizing that with the current ruling, the possibility of fraud and manipulation may increase and the current decision creates loopholes from a regulatory point of view.

Will This Affect the Ripple vs SEC Case?

SEC considers Ripple’s XRP as a security and wants it to be regulated as a security within the market. With the brief filed, the outcome of the case becomes important for the entire industry as this will pave a path for how these cryptocurrencies are classified and regulated moving further. Better Markets is now urging the court to reverse the lower court decision in interest of the investors as it would maintain the integrity of the financial market.

With Ripple’s CLO Stuart Alderoty stating that the case might be dropped in one of their tweets by the next administration, can this brief make an impact on court’s final decision or will this case be dropped as suggested by Alderoty? Only time will tell what’s next for this case and the decision is sure to make an impact on the industry.

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