A US Securities and Exchange Commission lawsuit against Ripple Labs Inc. has kept crypto on edge since 2020 by raising the prospect that digital tokens are securities that fall under the agency’s strict regulatory purview. Yet even as a ruling Thursday seemed to undermine the watchdog’s case, the issue is far from settled.
The judge in the proceedings ruled that the XRP token linked to Ripple was a security when sold directly to institutions but not when offered to the public on exchanges. The industry rejoiced in the implication of potential limits to the SEC’s power to extend a crackdown on a sector it argues is replete with risky practices.
Read More : Crypto Market Cheers SEC’s Setback in Ripple Suit, But Uncertainty Lingers