Sidley is representing the Chamber of Digital Commerce in connection with its amicus curiae brief in the SEC v. Ripple case currently pending in the U.S. District Court for the Southern District of New York. The Chamber submitted a motion for leave to file its amicus brief in this case to be a true “friend of the court” and provide a legal framework based on settled SEC jurisprudence to create a predictable legal environment for the blockchain industry.
The outcome of this important case depends on the Court’s application of the correct analytical framework to digital assets. The Chamber’s brief does not advocate on the merits of the arguments made by either party in the litigation, but lays out the applicable legal precedent for initial offerings of digital assets and makes the Court aware that no federal law (or regulation) governs the legal characterization of a digital asset recorded on a blockchain. It also urges the Court to clarify that the law applicable to an investment contract is separate and distinct from the law applicable to the subject of that investment contract.
The decision in this case will have far-reaching implications for blockchain market participants, including investors, trading platforms, and technology companies that seek to facilitate both securities and commercial transactions in digital assets.
The Sidley team is led by partner Lilya Tessler. This amicus curiae filing builds on the Chamber’s previous amicus brief in the 2020 SEC v. Telegram litigation, in which a Sidley team led by Lilya Tessler also represented the Chamber.