Yen-Linked Coin Buyers Lose Securities Claim but Keep Suit Alive

Purchasers of a purportedly yen-linked “stablecoin” who sued over its volatility lack a securities law claim against Japanese issuer GMO-Z.com Trust Co. but they have adequately alleged deceptive business practice claims, a federal court ruled.

The buyers failed to show that the GYEN coin was a security, Judge Analisa Torres of the US District Court for the Southern District of New York said in an opinion docketed Tuesday. GYEN doesn’t meet the criteria for a security because a rise in its value would be due to a rise in the value of the yen, not “from the entrepreneurial or managerial ...