A federal judge has denied stablecoin issuer Terraform Labs’ motion to dismiss a lawsuit from the U.S. Securities and Exchange Commission (SEC). The SEC argued that TerraUSD (UST), the Anchor Protocol, and LUNA may have violated securities law. The judge rejected the argument that the expectation of profit from the coins could not be solely attributed to the defendants’ efforts. The SEC stated that Terraform had actively encouraged both retail and institutional investors to buy UST. The ruling sets a precedent different from the one established in the Ripple case.
AI Sentiment: Negative
