A federal judge in New York split with another judge who earlier this month ruled that a Ripple Labs token was not a security when sold to the public on secondary markets.
US District Judge Jed Rakoff, who is overseeing an SEC case against Terraform Labs and its founder Do Kwon, said Monday he rejected the distinction made in the Ripple case between public and institutional sales. Rakoff’s decision doesn’t overturn the earlier ruling by US District Judge Analisa Torres but revives uncertainty about the status of digital assets.
The SEC has urged other judges not to adopt Torres’s reasoning and has said it is weighing an appeal. Rakoff raised the issue in a decision denying Kwon and Terraform’s motion to dismiss the SEC’s case against them.
