The Washington-based non-profit organization Better Markets has taken a firm stand in favor of the U.S. Securities and Exchange Commission (SEC) by filing an amicus brief to support the agency’s appeal against Ripple.
Known for advocating for the protection of public interests in financial markets, Better Markets argues that the recent court decision regarding Ripple could have serious implications for investor protection and the broader regulatory landscape of cryptocurrency.
Narrowing the Definition of Investment Contracts
Better Markets has expressed strong concerns over the district court’s interpretation of the term “investment contract.” The non-profit organization emphasized that the ruling significantly limits the scope of this legal definition by excluding several cryptocurrency offerings.
The group argues that this narrowing of the definition undermines the SEC’s ability to enforce securities laws effectively within the crypto sector.
According to the brief, the district court’s ruling could lead to the proliferation of investment offerings that would bypass regulatory oversight. Better Markets believes this could pave the way for significant harm to everyday investors, leaving them vulnerable to fraud and other financial risks.
Implications Of The Ripple Lawsuit for Investor Protection
Better Markets warns that if the SEC’s jurisdiction over cryptocurrency-related securities is weakened, it will lose a critical tool to protect investors. The brief claims that such a precedent would expose a large number of American investors to potential exploitation and financial loss.
The non-profit highlighted the risk of widespread predations in the crypto industry if legal loopholes enable projects to avoid securities regulations.
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Previous Statements by Better Markets CEO
Dennis Kelleher, the CEO of Better Markets, has been vocal about his support for the SEC’s stance on crypto regulations. He previously predicted that the SEC has a 90% chance of succeeding in its appeal against Ripple. Kelleher has also criticized the cryptocurrency industry as a largely unregulated sector.
In an earlier interview with Bloomberg, Kelleher described the crypto industry as operating outside the established laws. According to Kelleher, the crypto industry believes no current legal frameworks sufficient to regulate it.
Kelleher noted that this pushes regulators into an unnecessary race where they must “catch them if they can.” Better Markets’ involvement in the Ripple lawsuit highlights its broader concerns about the potential fallout from weakening regulatory oversight.
However, Ripple’s multiple victories over the SEC in the U.S. Courts suggest the company may have strong legs to stand on in its arguments against securities-based regulation.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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