- Judge Jed S. Rakoff ruled Terraform Labs’ four tokens, including LUNA and UST, as unregistered securities.
- Attorney Rispoli commented that XRP would have also been deemed a security if Judge Rakoff ruled it.
- The attorney highlighted the necessity of Congress’ action for unbiased ruling in the crypto space.
Attorney Fred Rispoli shared an X post, commenting on the US court’s recent ruling that categorized Terraform Labs’ tokens as securities. Drawing parallels between Terraform’s UST, LUNA, wLUNA, and MIR and Ripple’s XRP, Rispoli asserted that if XRP were analyzed by the same judge, it would have also been deemed a security.
In a recent court order, U.S. District Judge Jed S. Rakoff ruled in favor of the Securities and Exchange Commission, concluding the failed crypto exchange Terraform Labs’ four tokens, including UST and LUNA, were unregistered securities. The ruling marked a crucial turn in the protected legal struggle between Terraform Labs and the SEC as the firm was under the scrutiny of the regulators on allegations of “orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.”
In a tweet, Johnny Krypto, the co-host of Good Morning Crypto Show, acknowledged Judge Rakoff’s ruling as the “first real win” of the SEC. Previously, when Judge Analisa Torres ruled XRP was a non-security, it marked a partial victory for Ripple, as the judge’s classification of the institutional sale of XRP as security aligned with the SEC’s claim. Reflecting on the diverse rulings on Ripple’s XRP and Terraform’s LUNA, Rispoli stated, “A prayer of thanks…he [Judge Rakoff] was not the judge in SECvRipple should be said by all of us.”
Sharing his disappointment with Judge Rakoff’s ruling that sided with the SEC, Rispoli asserted that the US would continue to “wreak havoc on predictability for the industry” without the interference of Congress. He added, “Without Congressional action the US will continue to have one-off judicial rulings that must grind their way through the appellate system.”
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