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SEC v. XRP: Lawyer Explains How Chamber of Digital Commerce Will Help Ripple and XRP

Fri, 09/16/2022 - 10:00
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Gamza Khanzadaev
Participation of Chamber of Digital Commerce in case is win-win, explains lawyer
SEC v. XRP: Lawyer Explains How Chamber of Digital Commerce Will Help Ripple and XRP
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As U.Today reported yesterday, the Chamber of Digital Commerce, an independent pro-blockchain association, has filed a motion to intervene in the lawsuit between Ripple and the SEC. As an extremely interested third party in the case, the organization is hoping to get an opportunity similar to the one it was granted in the SEC's case against Telegram.

The news of the chamber's possible participation was received most positively, but there were skeptics who still questioned the advisability of the event. A pro-XRP activist and lawyer known on Twitter as @Belisarius2020 offered his opinion on the news.

Thus, the lawyer said that the purpose of the chamber is to give the court the notion that the digital asset and transactions with it are two separate entities. The court's adoption of the clarification that Ripple transactions with XRP and the independent circulation of XRP are not the same would have prevented the precedent in which cryptocurrency trading in the secondary market becomes securities trading, says lawyer.

Flip the script

At the same time, says the expert, the chamber and crypto industry will get a positive result even if the court recognizes that Ripple sales were investment contracts and, therefore, XRP in this particular case is a security, if at least the need for two separate investigations is recognized.

In summary, the lawyer notes that the Chamber of Digital Commerce's involvement in the case is neither good nor bad for Ripple or XRP but makes sense in terms of the continued functioning of the crypto industry.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.