Blockchain Association, a crypto lobbying group, has backed Ripple and requested the court for permission to assist the company in its legal struggle.
The backstory
The Internet Choice Advocates Network, SpendTheBits, and other interested parties submitted amicus papers. The largest publicly traded XRP (1) holder, Ripple, stated in its quarterly report that it only possesses less than 50% of the total XRP supply. In order to assist payment firm Ripple in its legal battle with U.S. regulator Securities and Exchange Commission, the lobbying organization Blockchain Association has requested authorization from the court (SEC).
Proponents and lobbying organizations for blockchain technology support Ripple. In the SEC v. Ripple legal dispute, the Blockchain Association, a crypto lobbying group with headquarters in Washington, D.C., asked for permission to intervene on Ripple's behalf as a friend of the court. The payment industry behemoth Ripple was sued by the US SEC for selling XRP as unregistered securities. The case has seen several procedural motions since December 2020, and both sides have submitted their motions.
What could expansion result in?
According to the Blockchain Association, the SEC's overly expansive interpretation of the securities rules could have disastrous repercussions for the sector and the general public. The brief argues that since the SEC "illegally" used secondary sales as evidence that Ripple broke federal securities laws, the court should consider XRP's unique purpose. To determine whether an asset is a security, the Howey test, established by a Supreme Court decision, must be met by many tokens traded on secondary markets. Document (2) read:
An important factor to consider when seeking to enforce securities regulations is how an asset that may have been issued as a security may continue to exist after it is no longer connected to any investment contract. The Blockchain Association is not the only organization that backs Ripple. On October 28, with the court's approval, the Investor Choice Advocates Network and SpendTheBits Inc. submitted their amicus brief.
These organizations contend in their brief that the SEC's definition of "investment contract" is ambiguous and indicates that efforts have been made to determine the SEC's authority over cryptocurrencies. In a recent quarterly report, Ripple, the largest public holder of XRP, noted that it presently possesses less than 50% of the altcoin's supply. Furthermore, the massive payment company runs just four of the 130 XRP validator nodes.
CEO of Ripple, Brad Garlinghouse, responded to the post by saying:
Below 50% - a huge milestone! For 10 years, Ripple has focused on using XRP & the XRPL within our products for its speed, security and scalability for movement of value. As more customers use XRP in their payments flows, it’s clear there is real utility here. https://t.co/jKZwye17uZ
— Brad Garlinghouse (@bgarlinghouse) October 27, 2022
IS XRP oversold?
Crypto analyst and licensed trader Duncan Baldwin examined the XRP/USD price (3) chart and found that the cryptocurrency has lately dipped. XRP has resumed its upward trend and gained 2.5% overnight. According to Baldwin, the XRP/USD pair appears to be oversold locally. A surge in the price of XRP is anticipated as the pair reaches the horizontal support level between $0.42 and $0.43.
