A US crypto advocacy group, the Chamber of Digital Commerce (CDC), has been cleared by the Court of Southern District of New York to participate as an amicus curiae in the US Securities and Exchange Commission (SEC) case against Ripple Labs . “Friend of the court” status allows them to assist a court by providing information, expertise or insight.
An injunction was signed by Judge Analisa Torres on September 21. The CDC will file its letter on Sept. 26.
While explaining its interest in the case, CDC’s legal team emphasized the far-reaching implications of the court decision, namely whether the law applicable to the 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 worth more than $1.38 billion. The outcome of this case could determine whether XRP is an effect. If the judge rules in favor of the SEC, it could be the precedent the committee needs to take legal action against other crypto projects that have sold tokens in a similar way to Ripple.
Related: CFTC Commissioner Visits Ripple Offices As SEC Case Decision Emerges
In response to the CDC’s request for amicus curiae status, the SEC has asked the court to grant additional time and pages if more amicus briefs are allowed. Ripple objected to the SEC’s demand, calling it “another transparent effort to further delay the resolution of this matter”.
In July, the SEC attempted to revoke “amici curiae” status from XRP holders, but Judge Analisa Torres rejected the request.