The SEC v Ripple case continued to take a backseat on Wednesday, with the market focus remaining on FTX and Binance’s plans to acquire the beleaguered platform.
However, news of Binance pulling the plug on the FTX acquisition left XRP and the broader market reeling.
Amicus Brief Requests Roll in Amidst Crypto Market Chaos
On Wednesday, Reaper Financial requested to file an Amicus Brief ahead of the November 11 deadline. Reaper Financial purchases and subsequently destroys assets.
According to the filing, Reaper Financial targets digital asset tokens existing on various blockchains, including but not limited to, the XRPL. Reaper Financial selects digital assets through a decentralized voting mechanism that requires the XRPL to function.
Referencing the ongoing SEC case against Ripple, Reaper Financial stated,
“It is greatly concerned with the SEC’s year-long position that the computer code that comprises the XRPL is itself a security/investment contract along with XRP.”
The filing went on to say,
“Reaper Financial must use XRP in order to issue a fungible token on the XRPL. Any project wishing to issue tokens on XRPL requires funded XRPL accounts and a certain amount of XRP.”
The latest filing joins a growing list of Ripple supporters.
However, news of Binance withdrawing from the FTX acquisition overshadowed the filing. For the defendants and XRP holders, the collapse of FTX will give the SEC and SEC Chair Gary Gensler greater incentive to oversee of the digital asset space.
In response to the FTX demise, the SEC Chair said,
“What we’ve seen in the last two days, if I can sort of step back from it a bit, it’s really part of a pattern of what we have seen over the past six or eight months.”
Gensler went on to say,
“Investors get hurt when we don’t rely upon the time-tested public policy guardrails.”
While the SEC may feel the collapse of FTX as a reason to regulate by enforcement more rigidly, US lawmakers will need to expedite the Lummis Bill and other bipartisan efforts to introduce a regulatory framework that doesn’t dismember the digital asset space.
Credit: Source link