TO US Securities and Exchange Commission lawsuit against Ripple Laboratories Inc. has kept cryptocurrencies on the edge since 2020 by raising the possibility that digital tokens are securities that fall under the agency's strict regulatory purview. Yet even as a ruling on Thursday appeared to undermine the watchdog's case, the issue is far from resolved.
The judge in the process ruled that he XRP the Ripple-pegged token was a security when sold directly to institutions, but not when offered to the public on exchanges. The industry rejoiced at the implication of the potential limits on the SEC's power to extend the crackdown on an industry it argues is rife with risky practices.
