JAKARTA In Ripple's feud with the US Securities and Exchange Commission (SEC), one of the leading venture capital companies is providing its support for Ripple. The company is Paradigm, which poured USD 2.5 billion into investing in crypto and web3 projects. Paradigm is one of the largest investment companies in the cryptocurrency sector.
Paradigm has officially filed an amicus theft to court to provide support for blockchain-based cross-border payment company Ripple Labs. In response to this, Paradigm stated that Ripple's litigation results may have a significant impact on the development and operation of crypto and Web3 businesses.
According to a Coingape report, the company claims that it wants to take part in this case out of concern that a decision that casually adopts the terminology favored by the SEC could have significant & unexpected consequences on the Paradigm and other companies aiming to use the new technology in a way that could benefit users.
The US Securities and Exchange Commission or SEC included XRP in the securities category guided by Howey test. According to Paradigm, the Howey test has been incorrectly used by regulators.
The document emphasizes that no federal appeals court has ruled that assets subject to investment contract transactions are the securities themselves or that the next transfer of those assets will constitute securities transactions, the SEC also does not cite such precedents.
On the surface, disputes may concern whether offers and sales of certain XRP tokens qualify as securities offerings. However, the SEC rhetoric goes further than what it claims to believe that the XRP token and, with its expansion, various other crypto assets, are actually securities.
Paradigms argue in documents aimed at the court that the SEC's attempt to seek new jurisdictions through courts is a violation of regulations.
With the entry of leading company support, it is hoped that Ripple cases can find a bright spot soon after it will take more than a year. The feud has started since the end of 2020. The SEC is suing Ripple and its executives for selling unregistered securities.
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