American crypto advocacy group, the Chamber of Digital Commerce (CDC), has been granted approval by the Southern District Court of New York to participate as amicus curiae in the US Securities and Exchange Commission (SEC) case against Ripple Labs. The “friend of the court” status allows them to assist the court by providing information, expertise or insight.
The order was signed by Judge Analisa Torres on September 21. The CDC has until September 26 to submit its comments.
While explanatory In its interest in the case, CDC’s legal team highlighted the far-reaching implications of the court’s decision, namely whether the law applicable to a securities transaction is properly distinguished from the law applicable to secondary transactions.
The case was opened in 2020 when the SEC alleged that Ripple and its executives Brad Garlinghouse and Christian Larsen sold XRP as unregistered securities valued at over $1.38 billion. The outcome of this case could determine whether XRP is a security. If the judge rules in favor of the SEC, it could set the precedent the commission needs to take legal action against other crypto projects that have sold tokens similar to Ripple.
In response to CDC’s request for amicus curiae status, the SEC asked the court to grant additional time and pages if more amicus briefs are allowed. Rippling protested against the SEC request, calling it “another transparent attempt to further delay the resolution of this case.”
In July, the SEC tried to cancel “amici curiae” status of XRP holders, but Judge Analisa Torres denied the request.