Fight to Regulate Crypto at Crossroads as Ripple Ruling Looms
Arthur Jakoby, partner and co-chair of Herrick's Securities Litigation and Enforcement Group, spoke to Bloomberg Law about an upcoming New York federal court ruling that could have a significant impact on the regulation of the cryptocurrency industry.
The article highlights the Ripple Labs Inc. case, one of the most closely watched fintech lawsuits over the past several years. This case will decide whether prominent digital tokens should be treated as a security, and if so, the Securities and Exchange Commission ("SEC") will have ammunition to claim jurisdiction over a majority of digital assets. The SEC has already implemented multi-million-dollar fines on crypto companies and promoters but has yet to produce any specific guidance as to when a digital token amounts to a security.
Arthur noted, “Instead of engaging in transparent and public rulemaking, with industry comments, the SEC has chosen to mark its digital asset territory via the federal court system.”
Read the full article in Bloomberg Law here. Access may require a subscription.