Ripple Ruling on Crypto Rejected by Federal Judge in Terra Case
- Judge rejects Ripple ruling distinction hailed by crypto fans
- Decision again muddies regulatory outlook for digital assets
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A federal judge in New York split with another judge who earlier this month ruled that a Ripple Labs token was not a security when sold to the public on secondary markets, adding to uncertainty over cryptocurrency regulation.
US District Judge Jed Rakoff on Monday allowed the Securities and Exchange Commission to go forward with its case against Terraform Labs Pte and founder Do Kwon. In doing so, Rakoff said he rejected the distinction made in the Ripple case between public and institutional sales.