The legal director of Ripple, Stuart Alderoty, shared his opinions related to the recent decision in the case terraform labs. A US federal judge, Jed Rakoff, ruled on December 28 that Terraform Labs and its co-founder, Do Kwon, ccommercialized securities not registered as cryptocurrencies, with the inclusion of the Luna token and the TerraUSD (UST) stablecoin.
When commenting on the recent decision in a publication on the X application, Ripple's legal director cited the decision in the case involving the company and the Securities and Exchange Commission (SEC), in addition to criticizing the regulator.
Alderoty highlighted three points in his reflection related to the case:
“I don't have a firm opinion on the merits of the Terraform case, but here are some thoughts on yesterday's decision. 1. Facts matter. 2. Judge Rakoff does not criticize, much less cite, Judge Torres' Ripple decision; 3. Crypto’s “forever” war SEC, waging token by token in lengthy litigation, is a fool’s errand driven by a quest for political power at the expense of sound policy,” he wrote.
I have no firm view on the merits of the Terraform case, but here are a couple of thoughts on yesterday’s ruling. 1. Facts matter. 2. Judge Rakoff does not criticize, let alone even cite, Judge Torres’ Ripple ruling; 3. The SEC’s “forever” crypto ground war, fighting tokens by…
— Stuart Alderoty (@s_alderoty) December 29, 2023
Judge rules that TerraUSD and Luna are securities
Federal Judge Jed Rakoff recently ruled that Terraform Labs and its co-founder, Do Kwon, traded securities not registered as cryptocurrencies.
The decision by the US Federal Court is seen as a major victory for the sector's regulator in the country, the Securities and Exchange Commission (SEC).
In his ruling, the judge granted the SEC summary judgment on allegations that Terraform offered unregistered securities and swaps, which were based on securities.
