In the ongoing legal battle between the SEC and Ripple, a new development has emerged. Better Markets Inc., a nonprofit organization, has filed an amicus brief in support of the SEC. For context, the SEC has appealed the 2023 ruling, arguing that Judge Torres made errors when deciding that certain sales of XRP on digital asset exchanges were not securities.
To summarize the SEC’s position: they believe the judge wrongly ruled that these “programmatic sales” of XRP were not securities. The SEC argues that these sales should have been considered securities, as they were conducted through exchanges, even though the buyers didn’t directly purchase from Ripple.
Attorney Jeremy Hogan took to social media and said that Better Markets’ amicus brief seems to misunderstand the trial judge’s ruling. The judge didn’t rule that XRP sales on exchanges weren’t securities because the buyers didn’t purchase directly from Ripple.
Instead, the judge found that these transactions were “blind bid/ask” sales, meaning buyers couldn’t know if they were buying from Ripple or another seller. This meant the buyers couldn’t rely on Ripple to increase the price, which was a key factor in the judge’s decision.
Hogan expressed frustration that Better Markets didn’t directly address the core issue of how the judge applied the facts to the law. Instead, the brief argued that the decision was wrong without tackling the legal reasoning behind it. Better Markets also suggested that if the ruling stands, the SEC wouldn’t be able to protect investors, but Hogan disagreed with this line of argument.
What is an Amicus Brief?
An amicus brief (short for amicus curiae brief) is a document filed in a court case by someone who is not directly involved in the case but wants to provide additional information or arguments that may assist the court in making its decision. The term amicus curiae translates to “friend of the court,” meaning the person or group submitting the brief is offering their expertise or perspective to help the court understand broader issues or implications of the case.
