A US crypto advocacy group, the Chamber of Digital Commerce (CDC), has received approval from the Southern District Court of New York to participate as amicus curiae in the Securities and Exchange Commission case ( SEC) of the US v. Ripple Labs. “Friend of the court” status allows them to assist a court by providing information, knowledge or expertise.
Judge Analisa Torres signed an order on September 21. The CDC will submit its brief by September 26.
While explaining its interest in the case, CDC’s legal team highlighted the far-reaching consequences of the court decision, namely whether the law applicable to the securities transaction is properly distinguished from that applicable to secondary operations.
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 a security. If the judge rules in favor of the SEC, it could be the precedent the commission needs to take legal action against other crypto projects that sell tokens in a similar way to Ripple.
Related: CFTC Commissioner Visits Ripple Offices as SEC Case Decision Approaches
In reaction to 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 opposed the SEC’s lawsuit, calling it “another transparent attempt to further delay the resolution of this case.”
In July, the SEC sought to revoke XRP holders’ amici curiae status, but Judge Analisa Torres dismissed the request.