Half a dozen holders of the crypto asset XRP are weighing in on the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs.
The six XRP holders say in an amicus brief that if the SEC is successful in its argument that the seventh-largest crypto asset by market cap is a security, various stakeholders in the crypto space will be harmed.
Amicus Curiae is Latin for “friend of the court.”
“Amici curiae respectfully submit this brief because if the SEC is successful in its claims against XRP, the SEC would have the authority to regulate a vast number of non-parties, including digital asset exchanges, developers, vendors, and ordinary users and holders of XRP, including amici.
This would dramatically affect the entire secondary market for XRP and possibly, the entire cryptocurrency market.
While the SEC uses this enforcement action as a test case for expanding its jurisdictional reach, millions of innocent holders suffer the harm.”
The half a dozen holders say that SEC’s lawsuit brought against Ripple in late 2020 has rendered thousands of XRP holders unable to access their crypto assets.
The XRP holders further argue that while some owners of the seventh-largest crypto asset by market cap may have bought it as an investment, it was not at the behest of Ripple.
“There is no doubt that many acquired XRP for consumption. There is no doubt, XRP was also acquired for investment, usually in conjunction with Bitcoin and Ether. XRP holders who did invest, however, didn’t because of Ripple.
But because of the sweeping allegations, thousands of innocent holders’ life savings and retirement accounts are frozen, unable to convert their XRP into Bitcoin, Ether or US dollar.”
Coinbase exchange and crypto industry lobby group the Blockchain Association are some of the other organizations that have formally filed amici briefs filed this week either in support of Ripple or in opposition to the SEC.
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