Ripple Vs. SEC: Better Markets Joins Legal Clash With Amicus Brief

• Washington nonprofit backs SEC, arguing Ripple XRP meets the Howey Test for securities.
• Better Markets warns of potential dangers in an unregulated crypto market.
• Despite slight dips, XRP holds above $3; the bullish outlook remains strong.

Yesterday, Tornado Cash celebrated a significant legal victory, causing its native token to skyrocket. This triumph has ignited speculation among crypto enthusiasts and analysts. That drew parallels to the ongoing Ripple XRP vs. SEC case.

They believe a Ripple XRP victory could send the XRP price soaring past $30 or more. This has sparked excitement across the crypto landscape.

Meanwhile, the legal saga of the Ripple XRP vs. SEC has taken a new twist. A fresh player has stepped into the battle, fueling an intense courtroom battle.

This player is Better Markets Inc., a Washington-based nonprofit dedicated to safeguarding public interests in financial markets. This organization has clarified its stance by filing an amicus brief supporting the US SEC.

Better Markets argues that the XRP token meets the criteria of an investment contract under the Howey Test. This warrants its classification as a security.

Furthermore, the SEC has appealed the 2023 ruling. They assert that Judge Torres misjudged when she excluded certain XRP sales on digital exchanges from being labeled as securities.

The brief, submitted on January 22, 2025, underscores the critical need for regulatory clarity to shield retail investors.

It highlighted alleged legal inconsistencies in the earlier ruling that had tilted the Ripple XRP favor. This showed that the stakes in this legal showdown are higher than ever.

Hogan Expressed Frustration That Better Markets Misunderstand The Trial Judge’s Ruling

Recently, Attorney Jeremy Hogan took to social media. He shared his disappointment with Better Markets’ recent amicus brief in the ongoing case.

Hogan chastised the institution for ignoring critical aspects of the case. That includes how the court applied the facts to the law. Instead of addressing the judge’s legal rationale, the brief argued that the decision was flawed without digging into its logic.

An amicus brief is a legal document presented by a person or group not directly engaged in a case. However, they want to provide extra arguments or insights to help the court make a judgment.

In his post on X, Hogan pointed out that Better Markets seems to have misunderstood Judge Torres’ ruling. The judge didn’t conclude that Ripple XRP sales on exchanges were not securities. That’s simply because the buyers didn’t purchase directly from Ripple.

Instead, the decision hinged on the nature of these transactions, described as “blind bid/ask” sales. In such trades, buyers cannot know if they transact with Ripple XRP or another seller.

This eliminates the possibility of relying on Ripple XRP to drive the token’s value. It was a critical aspect of the court’s judgment.

Moreover, It is evident that Better Markets’ has a history of siding with the SEC against the Ripple XRP lawsuit. Last year, the nonprofit’s CEO, Dennis Kelleher, openly stated that the SEC had a 90% chance of winning its appeal.

This bold prediction reflected the organization’s longstanding bias in favor of the regulatory agency. That raised questions about the neutrality of its involvement in the case.

Without Regulation, Retail Investors Could Face Potential Risks

The filing by Better Markets also raised alarms about the potential impact on retail investors. That could be seen if cryptocurrencies like XRP remain outside the scope of securities laws.

More to it, the organization argued that the district court’s ruling heavily favors institutional investors. At the same time, this left retail participants vulnerable in a market notorious for its volatility and lack of regulation.

Better Markets emphasized the growing prevalence of crypto investment opportunities, particularly among retail investors.

The brief cautioned that these offerings are often susceptible to market manipulation, extreme price fluctuations, and illicit practices. This frequently resulted in significant financial losses for everyday investors.

“Crypto investment offerings are still on the rise, especially with the participation of retail investors,” the organization noted.

In the brief, they underlined the urgent need for stricter oversight to mitigate risks. It ensured a safer environment for those engaging in the digital asset space.

Is a Settlement in the Ripple XRP Vs. SEC Lawsuit Possible Under the Trump Administration?

It is evident that with the inauguration of President Donald Trump, optimism is growing within the crypto community. They are hopeful that the regulatory “war on crypto” may finally be nearing its end.

A significant shift has occurred at the US SEC, with the White House appointing Paul Uyeda as acting Chair. Known for his pro-crypto stance, Uyeda is expected to take a markedly different approach from Gary Gensler’s aggressive enforcement style.

Under this new leadership, speculation about a potential settlement in the Ripple XRP case has also gained traction. Many experts anticipate a broader and more definitive resolution.

Some also suggest that the SEC might drop its non-fraud lawsuit against Ripple as part of a fresh start. Other prominent firms facing legal battles with the SEC, such as Binance and Coinbase, could benefit if this materializes.

Their cases may be settled or dismissed, too. This shift could mark a turning point for the crypto industry in the US. That could foster a more constructive regulatory environment.

Despite an influx from better markets, experts view the XRP price as strongly bullish in the long run

In the short term, the XRP price has shown a mild reaction to the amicus brief, dipping by 3%. However, selling pressure has not been strong enough to break through the 20-day and 50-day dynamic EMA zones.

When writing, XRP trades comfortably above the $3 mark, maintaining a significant lead over its 200-day EMA band. Adding to the market buzz, speculation about a potential XRP-based ETF is making the rounds, fueling optimism.

This and other positive developments have diminished the likelihood of a bearish turn for XRP in the immediate future. Notably, Mark W. Yusko, CEO of the billion-dollar firm Morgan Creek Capital Management, expressed a highly bullish outlook for XRP.

He highlighted its potential to be utilized as a foundation for Central Bank Digital Currencies (CBDCs). He considered it a backbone for national banking systems, underscoring its long-term promise.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.