What Ripple’s Partial XRP Win Means for Other Crypto Firms Fighting SEC
Partner and co-chair of Herrick's Securities Litigation and Enforcement Group, Arthur G. Jakoby, was quoted in CoinDesk discussing how the recent ruling by a U.S. court in Ripple vs. SEC may hinder the U.S. Securities and Exchange Commission's ("SEC") enforcement efforts of the cryptocurrency industry.
The article highlighted that this year the SEC has alleged that multiple cryptocurrency exchange platforms are operating as unregistered trading platforms by listing unregistered securities. The ruling by the U.S. District Court for the Southern District of New York stated certain sales and distributions of XRP tokens by Ripple and its executives were not investment contracts. Arthur explained that "the ruling undercuts the SEC’s position that secondary sales of digital assets on exchanges such as Coinbase constitute the sale of unregistered securities."
“If upheld on appeal, this decision significantly narrows the SEC’s jurisdiction over the crypto market,” Arthur noted.