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Ripple v. SEC: Plantiff’s Supporter Formally Files Amicus Brief

Fri, 11/18/2022 - 20:08
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Alex Dovbnya
The New Sports Economy Institute (“NSEI”) has filed a brief against Ripple’s motion for summary judgement
Ripple v. SEC: Plantiff’s Supporter Formally Files Amicus Brief
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The New Sports Economy Institute (“NSEI”) has formally filed its amicus brief in support of the U.S. Securities and Exchange Commission in the Ripple case.  

The brief says that the Howey test, which determines whether or not a certain asset is a security, remains “the gold standard” when it comes to flow-generating assets. 

If a certain asset doesn’t generate cash flow, the investor should be aware of the fact that “the only path to profit” is to find another speculative buyer. NSEI argues that average investors do not even realize that they are actually speculating. 

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When applied broadly, the Howey test still points to the fact that the “XRP scheme” is a security, according to the brief. It adds that those who invest in the Ripple-affiliated cryptocurrency are “certainly” dependent on the efforts of others. 

When it comes to XRP, speculative fervor “far outweighs” any consumptive intent, which remains “minuscule.” In NSEI’s option, crypto as a currency is “a failed vision.” However, this asset continues to act as a chameleon in order to engage in regulatory arbitrage by reinventing different narratives. 

NSEI concludes that classifying XRP as a non-security would give investors a false sense of security. 

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at