The Federal Court of Australia has ruled in favour of digital asset platform Block Earner, overturning prior findings that its discontinued crypto lending product, Earner, constituted a managed investment scheme or financial investment facility under the Corporations Act 2001.

In a judgment handed down by Justices O’Callaghan, Abraham and Button, the Full Court dismissed the Australian Securities and Investments Commission’s (ASIC) appeal and allowed Block Earner’s cross-appeal.

The Court set aside all declarations of contravention made by the primary judge and ordered ASIC to cover Block Earner’s legal costs.

The ruling brings an end to a closely watched legal case that has raised broader questions about the regulation of…