In the ongoing legal battle, Ripple continues to win up new supporters. One of the most recent is Paradigm, a VC firm that supports crypto projects and Web3 innovations.
With a record-breaking $2.5 billion fund that was eclipsed later in May by a $4.5 billion fund from Andreessen Horowitz, Paradigm remains one of the biggest investment companies in the cryptocurrency sector. Given that, it’s still pretty strange, why all of a sudden it’s taking part in the ongoing Ripple litigation.
Paradigm’s Reasons For Filing
In reply to this, Paradigm states that the outcome of the Ripple litigation might have a significant impact on the development and operation of crypto and Web3 businesses, which is why it has asked to submit an amicus brief.
The company claims that it wants to take part in the case because it is worried that a decision that casually adopts the terminology favored by the SEC could have significant & unanticipated consequences on Paradigm and other companies that aim to use the new technology in a way that could benefit users.
Read More: Ripple Gains More Supports Against SEC In XRP Lawsuit
The Howey test was used incorrectly, according to Paradigm’s major defense. The document emphasizes that no federal appellate court has ruled that an asset that is the subject of an investment contract transaction is a security in and of itself or that a subsequent transfer of that asset would constitute a securities transaction, and neither has the SEC cited any such precedent.
SEC’s Take Has Far-reaching Impact
On the surface, the dispute may concern whether certain XRP token offers and sales qualified as securities offerings. However, the SEC’s rhetoric goes further than what it demands since it believes that XRP tokens and, by extension, a wide range of other crypto assets, are in fact securities.
Paradigm contended in a document addressed to the court that, the SEC’s attempt to seek new jurisdiction through the court constituted a regulatory overreach.
Fridays are for filing briefs on behalf of #ripple. Thanks again, @FilanLaw! Quick take: Paradigm Operations, a VC, argues Howey cannot be used to classify underlying assets as securities, and in doing so, the SEC has erred, usurping the role of congress. https://t.co/7gTT1yFXyq
— WrathofKahneman (@WKahneman) November 12, 2022
According to a recent update provided by James K. Filan, two lawyers representing Paradigm Operations in the lawsuit — Kayvan B. Sadeghi and Shailee Diwanji Sharma have filed appearances.
The post Ripple Lawsuit: This VC Firm Files Amicus Brief In Fight Against SEC appeared first on CoinGape.
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