Better Markets Backs SEC in Ripple Case

Better Markets has thrown its support behind the U.S. Securities and Exchange Commission (SEC) in its legal battle with Ripple Labs. The organisation argues that the decision in the XRP case undermines investor protection.

#XRPCommunity #SECGov v. #Ripple #XRP @Ripple Better Markets Inc. has filed an Amicus Brief in Support of the @SECGov.https://t.co/cu8lTLBqtM

— James K. Filan ???? (@FilanLaw) January 22, 2025

The lobbying group submitted a letter to the court as amicus curiae — a “friend of the court.” 

Better Markets contends that the district court’s decision weakened the Howey Test, narrowing the definition of investment contracts and placing many cryptocurrency offerings outside the law’s scope.

As a result, investors have become more susceptible to fraud, and the agency’s ability to protect them has diminished.

In August 2023, the SEC challenged the decision, but the court rejected the Commission’s interlocutory appeal.

In January 2025, the agency made a renewed attempt to overturn the verdict, deeming it “factually and legally” incorrect.

Attorney Jeremy Hogan criticised Better Markets’ arguments, calling them “insufficiently substantive and inconsistent with the court’s findings.”

“Better Market’s” Amicus Brief was hard to read. Not because I don’t think this case will ever be ruled on by the appellate court, but because it COMPLETELY misses (or misconstrues?) what the Trial Judge ruled (see excerpt below).

The Trial Judge did NOT rule that sales of XRP… https://t.co/XCjKXYuwQo pic.twitter.com/cjpiCSkvHj

— Jeremy Hogan (@attorneyjeremy1) January 22, 2025

Ripple vs. Strategic Bitcoin Reserve?

Pierre Rochard, Vice President of Research at Riot Platforms, stated that Ripple is “the biggest obstacle” to establishing a strategic cryptocurrency reserve in the United States.

The biggest obstacle for the Strategic Bitcoin Reserve is not the Fed, Treasury, banks, or Elizabeth Warren.

It’s Ripple/XRP. They are aggressively lobbying against the SBR by throwing around $millions at politicians, desperately trying to derail it.

They did the same to…

— Pierre Rochard (@BitcoinPierre) January 23, 2025

According to the expert, the fintech company is interested in promoting CBDCs designed to operate on its infrastructure.

The expert accused Ripple of spending “millions” to influence politicians and derail the initiative.

“The biggest obstacle for the strategic bitcoin reserve is not the Fed, Treasury, banks, or [crypto-sceptic senator] Elizabeth Warren. It’s Ripple/XRP,” he wrote.

Rochard suggested that the company was counting on Kamala Harris winning the U.S. presidential election and approving the idea of launching a digital dollar. 

The specialist recalled the public support for her candidacy by co-founder Chris Larsen.

Ripple CEO Brad Garlinghouse denied the accusations made by the Vice President of Riot Platforms.

Unless you are choosing to ignore the core tenants of the POTUS campaign (which aggressively supports American companies and technologies), our efforts are actually INCREASING the likelihood of a crypto strategic reserve (which includes bitcoin) happening.

— Brad Garlinghouse (@bgarlinghouse) January 23, 2025

“Our efforts are actually increasing the likelihood of a strategic reserve of digital assets (which includes bitcoin) being established,” he wrote.

In addition to bitcoin, the U.S. national reserve could include other cryptocurrencies, such as XRP, ADA, and HBAR, according to Mark Yusko, CEO of Morgan Creek Capital Management.

In January, MARA CEO Fred Thiel stated that his firm is pushing for the initiative to be implemented across all 50 states and at the federal level in the U.S.