America-headquartered crypto advocacy group Blockchain Association is throwing its weight behind Ripple Labs during its ongoing legal fight with the SEC. 

Specifically, Blockchain Association reportedly share a belief that the case could play a vital role regarding the future direction of the crypto sphere. 

The advocacy group reportedly issued an official announcement of its decision to “stand” with the US crypto economy via submitting a filing for an amicus brief, alternatively referred to as “friend of the court” in the SEC enforcement action against Ripple.

Almost two years previously, the SEC reportedly disclosed that they were filing a lawsuit against Ripple former CEO Christian Larsen, and current CEO Brad Garlinghouse in Dec. two years ago, on the count of securing $1.3 billion via unregistered securities sales of XRP.

“This case, which is just one in a long line of SEC efforts to regulate by enforcement, highlights the SEC’s efforts to cement and legitimize its overly broad interpretation of the Howey test,” wrote the association.

The Howey Test reportedly decides which are the qualities, if satisfied, will identify an investment contract and hence is what is subject to U.S. securities regulations. 

In their brief, the Blockchain Association outlined why in their view, the SEC and Chairman Gary Gensler’s views of securities laws could have “devastating effects” on the crypto industry.

Their argument stated that blockchain technologies possess numerous use cases throughout the crypto sphere; tokens that can function as payment measures for goods and services, conveyance of intellectual property rights, inventory tracking, and for a specific purpose in a particular blockchain initiative.

“Applying the securities laws to those tokens – whether or not through the prism of the Howey test – would significantly restrict those networks from functioning.”