Better Markets, a non-profit advocating for financial reform, has filed an Amicus brief supporting the U.S. Securities and Exchange Commission (SEC) in its ongoing legal battle with Ripple Labs.
The organization argues that a prior decision by the District Court for the Southern District of New York undermines investor protections.
Ripple’s Victory Under Scrutiny
In its brief, Better Markets claims that XRP qualifies as a security. The non-profit also asserted that the district court’s ruling weakened the Howey test, a cornerstone of U.S. securities laws, by narrowing the definition of “investment contracts.”
According to the organization, the court excluded many crypto transactions from regulations, potentially exposing investors to fraud. It claims that retail traders are at risk since the SEC now has a diminished capacity to protect less sophisticated investors from fraudulent schemes because of the court’s interpretation of the law.
Ripple won a partial victory against th
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