Non-profit, financial markets based organization Better Markets has filed an Amicus brief in support of the United States Securities and Exchange Commission (SEC) in its ongoing lawsuit with Ripple Labs Inc. Per the filing, the company shared three unique arguments to back its claims that XRP sold the blockchain payments firm satisfies the Howey test.
The Better Markets Argument in Ripple Lawsuit
According to the filing, the sales of XRP to retail traders fulfils the third prong of the Howey Test. Better Markets emphasized that “investors’ acquisition of those securities on trading platforms does not altertheir character as such.”
It believes the ruling from the district court found no support in the statutory definitions of a security. As Better Markets argued, the prior ruling favoring Ripple in the lawsuit “conflicts with the Supreme Court’sdefinition of an investment contract in Howey.”
This Amicus Brief from Better Markets came about a week after Gary Gensler appealed the ruling, challenging the retail sales of XRP.
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