Alberts Comments On SEC's Ripple-XRP Cryptocurrency Appeal

Pryor Cashman Partner Jeffrey Alberts, who co-heads the firm's FinTech Financial Institutions, and White Collar Defense + Investigations Practices, spoke with Blockworks and Crowdfund Insider about the U.S. Securities and Exchange Commission's expected appeal of a federal court ruling in its action against Ripple Labs, creator of the XRP crypto token.

In "The SEC is vying for a Ripple appeal. Here's what to watch out for," Jeff told Blockworks that in the Southern District of New York decision:

Judge Torres' conclusions that digital assets such as cryptocurrency tokens are not themselves securities could severely limit the SEC's ability to apply regulations to platforms that custody or facilitate transfers or exchanges of digital assets... If the SEC's appeal is successful in expanding the categories of XRP sales constituting securities violations, it likely would increase the potential liability of Garlinghouse and Larsen for aiding and abetting those violations.