Last month’s decision by a court in the U.S. District Court for the Southern District of New York on the SEC’s claims against Ripple Labs has been generally hailed as a victory for the token issuers and exchanges. However, the actual impact of the decision on the future of cryptocurrencies in the U.S. is not so clear.
By highlighting the principle that the SEC’s jurisdiction over digital assets depends on the nature of the offer or sale of such assets rather than the intrinsic qualities of the asset itself, the decision is indeed a positive development for the industry. But other favorable aspects of the decision for Ripple seem ripe for a reversal on appeal. Ironically, that could strengthen the SEC’s hand going forward.
