Crypto Industry Secures Early Victory in Legal Battle With Regulators
A judge ruled that the sale of the cryptocurrency XRP on public exchanges did not violate securities law.
A federal judge ruled that on Thursday, the sale of a digital currency called XRP on public exchanges was in compliance with securities laws.
Since years, the Securities and Exchange Commission (SEC) has maintained that digital assets are securities like the stocks and bonds traded in Wall Street and should be regulated the same way. The S.E.C. The SEC has sued Coinbase and Binance for marketing unregistered securities.
The ruling in a case on Thursday involving Ripple, a crypto company, may complicate this argument and give the crypto industry ammunition to defend itself before a court.
The S.E.C. The SEC sued Ripple on December 2020 accusing it of violating securities law in one of first major legal battles to involve cryptocurrencies. In a 34-page decision on Thursday, U.S. District Court for the Southern District of New York Judge Analisa Torres said that Ripple had not broken the law by selling the cryptocurrency created by the company, XRP on public exchanges.