Washington-based non-profit Better Markets, which is focused on promoting "public interests" in financial markets, has filed an amicus brief in support of the U.S. Securities and Exchange's appeal against Ripple.
The filing says that the non-profit has "a strong interest" in this case after the definition of "an investment contract" has been dramatically narrowed by the district court, with a number of cryptocurrency offerings being removed.
The nonprofit has warned that "a huge number of everyday American investors" could be at risk as a result of this.
The SEC will lose its ability to protect investors from "widespread predations" in the crypto sector if it loses its jurisdiction over crypto securities.
"The district court’s decision is thus likely to spawn new types of investment contract offerings in the crypto realm and beyond that are immune from securities regulation and that inflict yet further financial pain on investors," the filing said.
As reported by U.Today, Better Markets CEO Dennis Kelleher previously stated that the SEC had a 90% chance of winning its appeal.
Last year, Kelleher described crypto as a "lawless industry" during an interview with Bloomberg.
"It's the only industry that I can think of ever better has taken the position that no laws apply to them. The security laws don't apply, the commodity laws don't apply. And they're basically saying to prosecutors and regulators, catch me if you can," he said.
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Arman Shirinyan
Dan Burgin
Vladislav Sopov