Court rules on whether digital token is a security

The U.S. District Court for the Southern District of New York ruled on a case where the Securities and Exchange Commission sued Ripple Labs, Inc. and two of its senior leaders for the unlawful offer and sale of securities in violation of the Securities Act of 1933.

The pivotal case is one of the first heard in a federal district court and determined whether digital tokens traded for value are considered securities under the act, setting the stage for further considerations.

Read on for more details.