U.S. District Judge Rakoff Rejects Previous Judge’s Distinction in Ripple Case
A recent ruling by U.S. District Judge Rakoff has rejected a previous judge’s distinction between institutional sales and sales to retail investors on crypto exchanges. This ruling has implications for Coinbase’s ongoing case against the Securities and Exchange Commission (SEC).
Key Points:
- Judge Rakoff rejects the distinction made by Judge Torres in the Ripple case.
- The Howey test, used to determine if an asset is a security, is referenced in the ruling.
- Coinbase’s use of the Ripple ruling in its own case against the SEC may be complicated by this rejection.
- The major questions doctrine, another defense used by Coinbase, is also potentially weakened by Judge Rakoff’s rejection in another case.
- Berenberg maintains a hold rating on Coinbase shares with a $39 price target.
Hot Take: This ruling by U.S. District Judge Rakoff adds further complexity to Coinbase’s case against the SEC, potentially undermining some of their defenses. It remains to be seen how this will impact the outcome of the case and the future of Coinbase in the crypto market.
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