Cryptocurrencies are all the rage in securities litigation. Indeed, U.S. Securities and Exchange Commission (SEC) Chair, Gary Gensler, has made it clear that the SEC is doubling down on its commitment to regulating crypto assets.  See U.S. Securities and Exchange Commission, Press Release, SEC Nearly Doubles Size of Enforcement’s Crypto Assets and Cyber Unit (May 3, 2022), https://www.sec.gov/news/press-release/2022-78 (last visited Dec. 29, 2023) (quoting Gary Gensler).

The law concerning whether cryptocurrency transactions are regulated securities continues to evolve. And the velocity of this evolution was recently depicted in Sec. & Exch. Comm’n v. Terraform Labs Pte. Ltd., No. 23-CV-1346 (JSR), 2023 WL 8944860 (S.D.N.Y. Dec. 28, 2023) (“Terraform Labs”).