CDC gives nod to Lummis-Gillibrand bill in proposed amicus brief in SEC v. Ripple case
The Chamber of Digital Commerce (CDC) has requested to file an amicus brief in the case of the United States Securities and Exchange Commission v. Ripple Labs and its executives Bradley Garlinghouse and Chris Larsen. Liliya Tessler of the firm Sidley Austin filed a package of documents, including the proposed brief, with the U.S. District Court of the Southern District of New York on Wednesday.
The CDC is the world’s largest blockchain and digital asset trade group, with over 200 members that include industry players, investors and law firms. It argued that the Chamber does not have “a view on whether the offer and sale of XRP is a securities transaction,” but it is interested in “ensuring that the legal framework applied to digital assets underlying an investment contract is clear and consistent,” adding:
The documents later restate the question as “whether the well-settled law applicable to the offer and sale of an investment contract that is a securities transaction is properly distinguished from the law applicable to secondary transactions in digital assets that were previously the subject of an investment contract” in light of the fact that “no federal law (or regulation) specifically governs the legal characterization of digital assets recorded on a blockchain.”
The Chamber is wading into the Ripple v. SEC case.Expect something similar to what it filed in the Telegram case and the argument is that although the SALE of XRP might have been as a security, the token is not inherently a security.Similar to JDeaton, just not as compelling. https://t.co/D7m0kxKdp6
In the proposed amicus brief, the CDC acknowledges the “fact-intensive” Howey test, which:
The CDC asked the court to reiterate the difference between contracts
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