The crypto advocacy group is given “the friend of the court” status.
The Chamber of Digital Commerce (CDC), a U.S. advocacy group for cryptocurrencies, has been given permission by the Court of Southern District of New York to take part as an amicus curiae in the U.S. Securities and Exchange Commission’s (SEC) case against Ripple Labs. As “friends of the court,” they are allowed to support a court by offering knowledge, experience, or insight.
Judge Analisa Torres penned an order on Wednesday. The CDC must submit its argument by September 26.
The CDC legal team explained its interest in the case and stressed the significant ramifications of the court’s ruling, specifically whether the securities transaction is appropriately separated from secondary transactions under the legislation.
The SEC filed a lawsuit against Ripple in 2020, alleging that its leaders Brad Garlinghouse and Christian Larsen sold the cryptocurrency Ripple (XRP) as unregistered securities worth more than $1.38 billion. Whether XRP is classified as a security may depend on how this case turns out. If the judge rules in the SEC’s favor, it may set the precedent necessary for the commission to file suit against other cryptocurrency ventures that offered tokens identical to XR.
The SEC has asked the court for extra time and pages if more amicus briefs are permitted in response to the CDC’s request for amicus curiae status. The SEC’s request was rejected by Ripple, who referred to it as “yet another obvious attempt to further postpone settlement of this issue.”
Judge Analisa Torres denied the SEC’s motion to revoke the “amici curiae” status of XRP holders in July.
