In its decision, the court ruled that the transactions in question, which concerned crypto tokens created by Terraform, were investment contracts under SEC v. Howey, and therefore securities under the Securities Act of 1933. It is perhaps no surprise that the court’s summary judgment opinion spanned 71 pages. By May 2022, approximately 14 billion UST tokens were deposited with the Anchor Protocol, of approximately 18.5 billion outstanding. 1 The SEC’s letter to the Coinbase court invoking the Terraform decision is available here, and a Notice of Supplemental Authority in the Binance litigation alerting the court of Terraform is available here. 4 Akin’s alert contrasting the ruling on the motion to dismiss in Terraform with the outcome in Ripple on summary judgment is available here.

Source: New York Times January 15, 2024 22:11 UTC