SEC vs Ripple: Better Markets Files Amicus Brief Supporting SEC

In the ongoing legal saga between the U.S. Securities and Exchange Commission (SEC) and Ripple, nonprofit organization Better Markets Inc. has submitted an amicus brief supporting the SEC. The brief backs the SEC’s appeal against the 2023 ruling by Judge Analisa Torres, which determined that certain XRP sales on digital exchanges were not securities.

SEC’s Argument: XRP Sales as Securities

The SEC contends that Judge Torres erred in her ruling, arguing that these so-called “programmatic sales” of XRP on exchanges should be classified as securities transactions.

The SEC maintains that these sales—conducted through blind bid/ask processes on exchanges—still meet the criteria for securities, even though buyers didn’t purchase XRP directly from Ripple.

Jeremy Hogan Responds

Jeremy Hogan, a prominent attorney and XRP advocate, criticized the amicus brief, claiming it misrepresents the trial judge’s ruling.

According to Hogan, Judge Torres didn’t rule against the SEC simply because XRP buyers didn’t purchase directly from Ripple. Instead, the ruling hinged on the “blind bid/ask” nature of the transactions.

In such transactions:

• Buyers don’t know whether they’re purchasing from Ripple or another seller.
• Buyers, therefore, can’t rely on Ripple to drive up XRP’s price—one of the key factors in determining whether a transaction involves a security.

Hogan argued that Better Markets failed to address this critical point in its brief. Instead, the organization claimed the decision undermines the SEC’s ability to protect investors—an assertion Hogan strongly disputed.

What Is an Amicus Brief?

An amicus brief, short for amicus curiae brief, is a document submitted to a court by an individual or organization not directly involved in the case. These briefs provide additional perspectives, expertise, or arguments that could help the court better understand broader implications of the case.

In Latin, amicus curiae translates to “friend of the court.” In the Ripple case, Better Markets is acting as an amicus to support the SEC’s efforts to overturn the 2023 ruling.

Implications for XRP and Crypto Regulation

Better Markets’ amicus brief reignites discussions about the classification of cryptocurrencies as securities and the SEC’s broader role in regulating the industry. The organization argues that upholding Judge Torres’ decision could weaken the SEC’s ability to protect investors.

However, Ripple’s supporters counter that the decision sets a necessary precedent for differentiating digital assets from traditional securities, fostering innovation in the crypto space.

As the legal battle continues, the SEC’s appeal and the involvement of organizations like Better Markets underscore the high stakes for Ripple, XRP, and the broader crypto industry. The outcome of this case could have significant implications for how cryptocurrencies are regulated in the U.S.