On July 13, 2023, the United States District Court for the Southern District of New York issued a mixed decision as to whether various sales and issuances of the XRP token (XRP) by Ripple Labs, Inc. (Ripple) and two of its executives (collectively the defendants) constituted the sale of an unregistered security in violation of
US SEC prevented from expanding fraudulent scheme liability
In a decision with significant implications for securities litigation and enforcement, the United States Court of Appeals for the Second Circuit recently rebuffed an attempt by the US Securities and Exchange Commission (SEC) to broaden the scope of “scheme liability” under Section 10(b) of the Securities Exchange Act of 1934 and Section 17(a)
US SEC administrative tribunals held unconstitutional
In a watershed opinion, a divided panel of the Fifth Circuit has ruled that the United States Securities and Exchange Commission’s system of in-house administrative tribunals is unconstitutional.
Read our full update here.