SEC v. The Crypto Industry—Tracking the SEC’s Ongoing Litigation Against Digital Asset Exchanges (Volume 57, Number 6—March 20, 2024)
Author: Frederick L. Block.; Alyse J. Rivett.; Sarah V. Riddell.; Madeleine Ayer.
Source: Volume 57, Number 06, March 15 2024 , pp.57-64(8)
Abstract:
“This is a question of great economic and political significance.” (Kraken’s motion to dismiss; see page 7.) Whether a digital asset exchange may offer digital assets for secondary trading without those digital assets being registered as securities and operate in the US without being registered with the US Securities and Exchange Commission as a securities exchange, clearing agency, or broker is being litigated in courts across the country, and likely will be litigated for years to come. The US Supreme Court may be the ultimate arbiter if it becomes necessary to resolve circuit court splits on these issues (which seem to be on the horizon). In the meantime, trillions of dollars hang in the balance as exchanges operating in the US face the threat of regulation by enforcement.Keywords: Grayscale Invs., LLC v. SEC; Howey Test; SEC v. Ripple Labs; Petition for Rulemaking from Coinbase Global, Inc.; Stablecoins as Securities; SEC v. Binance Holdings Ltd.
Affiliations:
1: Morgan Lewis & Bockius LLP (DC); 2: Morgan Lewis (SF); 3: Morgan Lewis (Chi); 4: Morgan Lewis (SF).