Every now and then a case comes along that actually changes crypto law. **First Impressions** are hasty but thoughtful scribbles on them preserved. *Enjoy*.
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*Securities and Exchange Commission v. Ripple Labs Inc., 1:20-cv-10832, (S.D.N.Y. Jul 13, 2023) ECF No. 874*
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Selling tokens to people you made feel like investors in the token and you is a security. That's called a round and an investment contract is implied. Howey is clear enough on this for crypto.
If you sell tokens anon like on an exchange the buyer doesn't expect that to fund you so they don't feel like an investor. Third prong fails.
Marketing and known proximity matters. Blind exchanges going to be more of a thing onchain.
z0r0z
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*Securities and Exchange Commission v. Ripple Labs Inc., 1:20-cv-10832, (S.D.N.Y. Jul 13, 2023) ECF No. 874*
--
Selling tokens to people you made feel like investors in the token and you is a security. That's called a round and an investment contract is implied. Howey is clear enough on this for crypto.
If you sell tokens anon like on an exchange the buyer doesn't expect that to fund you so they don't feel like an investor. Third prong fails.
Marketing and known proximity matters. Blind exchanges going to be more of a thing onchain.