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Blockchain Assoc. Seeks to Intervene in SEC vs Ripple

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Crypto Lobbying Group Blockchain Association Seeks Permission To Support Cross-Border Payment Firms ripple As a court friend in a lawsuit against the U.S. Securities and Exchange Commission (SEC).

The Washington, D.C. organization is also seeking permission from federal court to join the case, according to a report released Sunday (October 30).

In its motion, the Blockchain Association said, “The SEC’s extraordinarily broad interpretation of securities law will have devastating effects on the industry (and even beyond).”

In December 2020, the SEC sued Ripple and two of its executives for selling unregistered securities in the form of the XRP token created by its founders, seeking $1.3 billion in damages.

The SEC said that CEO Brad Garlinghouse and Executive Chairman Chris Larsen said, “It is objectively reckless to believe that XRP is not a security and that Ripple has been given ‘fair notice’ that XRP is a security. was,” he claims. The agency that delivers the documents.

read more: Ripple Claims Round Win In SEC Lawsuit Defining Cryptos As Securities

Earlier this month, Ripple claimed to have won a lawsuit to help determine whether cryptocurrencies are securities.

As PYMNTS pointed out, it is much more difficult to issue digital assets if you have to comply with securities regulations, and paying in securities triggers the IRS’ capital gains reporting requirements, so that question becomes a payment It is very important for the use of crypto as currency.

While the case is unlikely to go to trial this year, Ripple’s victory does allow access to internal SEC deliberations over a speech given by William Hinman, the agency’s then-director of corporate finance, in 2018. It was brought about by the fact that it was acquired.

In that speech, he claimed that the second largest cryptocurrency, Ethereum, has changed from a security to a non-securities. This is a position never formally endorsed by the SEC Commissioner at the time, and current SEC Chairman Gary Gensler has said it only applies to Bitcoin.

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