Ripple General Counsel Says Experts Agree SEC Lawsuit Outcome Will Determine Crypto Future
Arthur Jakoby, partner and co-chair of Herrick's Securities Litigation and Enforcement Group, was quoted in The Crypto Basic article discussing the upcoming New York federal court ruling in the Ripple Labs Inc. case which will likely have a significant impact on the regulation of the cryptocurrency industry.
The article notes that 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 faced criticism from crypto stakeholders over its regulatory approach in the crypto sector. To date, the SEC has 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.”