SummaryThere is now substantial, meaningful and quickly growing evidence cryptocurrencies function well beyond just a means of speculation.Downstream purchasers of the digital assets often don't have the expectation of profit necessary under the Howey test to implicate securities laws.SEC Commissioners have agreed there is a lack of fair notice and "clarity for market participants around the application of the securities laws".The Blockchain Association argues that fair notice includes regulations that are "sensible in the context of a software token".A positive ruling or settlement would likely allow XRP to be relisted on digital asset marketplaces like Coinbase, increasing demand.On Friday the Blockchain Association filed an amicus brief in the SEC v. Ripple lawsuit. The Association's lawyers joined other friends of the court petitioners like John Deaton in arguing that "downstream purchasers" of cryptocurrency coins and tokens are not necessarily investing in securities or involved in an investment contract. ...even if an initial token issuance qualified as an investment contract... the SEC seems to believe that that token remains a “security” through further, downstream transactions, no matter what rights the initial purchaser kept for themselves... why the downstream user purchases that token... or how that token is used. BRIEF OF AMICUS CURIAE THE BLOCKCHAIN ASSOCIATION, theblockchainassociation.org, 10/28/22 So intere...
