Ripple Effects: Developments Following Groundbreaking Decision in SEC v. Ripple Labs

Reuters Legal News

Alexander C. Drylewski Stuart D. Levi Daniel Michael Shaud G. Tavakoli Spurthi Jonnalagadda

Skadden attorneys discuss the July 2023 ruling in SEC v. Ripple Labs Inc. — which held that Ripple’s sales of XRP tokens through secondary trading platforms did not constitute securities transactions while its direct sales to institutional investors did — and subsequent developments that may impact other pending digital asset secondary trading cases, including:

  1. The denial of the SEC’s request for an interlocutory appeal to challenge the ruling regarding sales on secondary trading platforms.
  2. The SEC’s voluntary dismissal of charges against the individual defendants in the case, which suggests that the Commission may have strategically decided to avoid a prolonged trial.
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