Terraform Versus Ripple – Courts Split on Whether Cryptocurrency Is a Security

Summary – Just when it looked like a victory for the crypto industry in SEC v. Ripple, a mere two weeks later, a different judge in the Southern District of New York disagreed with Ripple’s holding, introducing greater uncertainty in the crypto space. In SEC v. Terraform, Judge Jed Rakoff, in denying a motion to dismiss, held that the cryptocurrencies at issue may be securities, and noted that it is insignificant whether securities are sold directly to institutional investors or on the…
By: Ballard Spahr LLP