Better Markets Supports SEC in Ripple Lawsuit Over XRP Classification

According to Odaily, the nonprofit financial markets organization Better Markets has filed an amicus brief in support of the U.S. Securities and Exchange Commission (SEC) in its ongoing lawsuit against Ripple. The document presents three distinct arguments asserting that XRP meets the criteria of the Howey Test. Better Markets emphasizes that the nature of these securities remains unchanged when investors purchase them on trading platforms. The organization argues that the district court's ruling lacks support from the statutory definition of securities. It contends that the previous ruling in favor of Ripple conflicts with the Supreme Court's definition of investment contracts in the Howey case. This amicus brief was submitted a week after Gary Gensler appealed the decision, which questioned the retail aspect of XRP. Better Markets also argues that the district court overlooked the economic realities of Ripple's issuance and sale of XRP tokens, as well as investors' ability to understand the connection between Ripple's actions and profit expectations. The organization recommends that the court overturn the ruling that XRP sales to retail traders on exchanges do not constitute investment contracts.