Venture firm Andreessen Horowitz and other backers of the Uniswap Protocol—a cryptocurrency exchange that runs on self-executing “smart contracts”—won a novel court ruling Wednesday absolving them of federal securities liability to platform users victimized by “scam tokens.”
Judge Katherine Polk Failla dismissed the proposed class action, which also targeted exchange founder Hayden Adams, several affiliates, and two other investment firms—Paradigm Operations LP and Union Square Ventures LLC. The judge, writing for a federal court in Manhattan, said a crypto exchange’s developers and investors aren’t covered by laws that apply to brokers issuing or promoting the sale of securities.
‘Enforcement 40’ for 2020
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