Following the recent decision of the US Securities and Exchange Commission (SEC) declaring LUNA, a cryptocurrency developed by Terraform Labs, as a security, Ripple, which is also under review by the SEC, issued a statement.
Ripple Lawyer Stuart Alderoty: “Judge Doesn't Criticize Ripple Decision in Terraform Labs Case”
Stuart Alderoty, one of Ripple's lawyers, shared his thoughts on the decision:
“I don't have a firm view on the merits of the Terraform case, but I do have a few thoughts about yesterday's decision. 1. Facts are essential. 2. Judge Rakoff does not criticize or even quote Judge Torres' Ripple decision; 3. The “forever” crypto war, where the SEC fights token to token in protracted litigation, is a folly driven by the quest for political power rather than sound policy.”
The decision in question was given by Judge Jed Rakoff of the US District Court for the Southern District of New York. The judge granted summary judgment that Terraform Labs violated federal securities laws when selling its cryptocurrencies to the public. The judge found that Terraform Labs failed to register LUNA and MIR, another cryptocurrency in the Terra ecosystem, as securities.
This summary judgment could shape a final hearing on Terraform's securities violations.
*This is not investment advice.