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Will Landmark Ruling Disrupt SEC’s Crypto Enforcement Strategy?

July 26, 2023

Securities Enforcement & Litigation partner Christian Schultz was recently featured in numerous publications — including Fortune, Barron’s, CoinDesk, and Blockworks — about a case between crypto firm Ripple and the Securities and Exchange Commission (SEC) in which a judge made a pivotal ruling that, while cryptocurrency sales to institutional investors constituted an unregistered security offering, open market sales did not.

Schultz, former Assistant Chief Litigation Counsel in the SEC’s Division of Enforcement, noted that the ruling is a decisive win for the crypto industry and could potentially disrupt the SEC's strategy in ongoing litigations — particularly those focused on secondary market activity. Additionally, he anticipates that crypto firms will innovate their approach to initial token distributions within the given regulatory context, despite the judge's decision aligning with the SEC's stance on institutional sales.

»Read the Fortune article: Experts are calling the Ripple ruling a win for the industry and XRP (subscription required).
»Read the Barron's article: Ripple Effects: How an ‘Alt Coin’ Is Breathing New Life into Crypto (subscription required).
»Read the Blockworks article: SEC in hot water after Ripple ruling, former agency attorney says.
»Read the CoinDesk article: What Ripple’s Partial XRP Win Means for Other Crypto Firms Fighting SEC.