A former official of the U.S. Securities and Exchange Commission’s (SEC) Office of Internet Enforcement warns that Ripple’s recent court ruling is facing problems. The official refers to a ruling by a judge in the Southern District of New York (SDNY) that allowed the SEC to proceed with its case against Terraform Labs, rejecting the distinction made in the Ripple case between public and institutional sales. The judge’s decision suggests that purchasers, regardless of whether they bought directly from the defendants or in a secondary market, had a reasonable expectation of profits based on the defendants’ actions and statements. The former official believes that the ruling in the Ripple case is based on unusual properties specific to that scheme and does not apply to cryptocurrencies in general. However, the official predicts that the decision is on shaky ground and likely to be appealed and reversed. The article concludes by mentioning that it was generated by DALLE-2, a language model, and provides general information about cryptocurrency news and analysis.
AI Sentiment: Neutral