The ruling in the Ripple case concluded that sales of Ripple’s XRP token directly to institutional investors violated the SEC’s rules, but offerings to retail investors on exchanges didn’t, delivering what was widely seen as a victory to the crypto industry.
The SEC, in a fresh filing in its lawsuit against crypto company Terraform Labs and its co-founder Do Kwon, said the second piece “creates an artificial distinction between the expectations of sophisticated institutional and retail investors.” It “improperly transforms” a decades-old test for determining when assets are securities, known as the Howey Test, into a subjective standard. The agency asked the court to reject that part of the decision and signaled that it was considering an appeal in the Ripple case.
‘Enforcement 40’ for 2020
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