Initial Coin Offerings Post XRP Court Win: Will SEC Setback vs Ripple Open Crypto ICO Floodgates?
Partner and co-chair of Herrick's Securities Litigation and Enforcement Group, Arthur G. Jakoby, was quoted in Crypto News BTC discussing XRP's recent win in the U.S. District Court for the Southern District of New York, and the effect it may have on the U.S. Securities and Exchange Commission's ("SEC") cryptocurrency enforcement moving forward.
The article highlighted that in the XRP case the court ruled that some gross sales and distributions of XRP cash by Ripple and its executives were not funding contracts. This could set a precedent for future and ongoing SEC cryptocurrency enforcement. Arthur noted that the choice refutes the SEC’s declare that secondary transactions of digital currencies on exchanges like Coinbase symbolize the sale of unregistered securities.
This ruling sharply reduces the SEC’s authority over the cryptocurrency market. Arthur explained that choice could “spell issues for the SEC in different pending litigation, notably these which can be targeted primarily if not solely on secondary market exercise,” despite the fact that no different district court docket judges are required to observe the logic in it.