• The US Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple Labs alleging the sale of unregistered securities.
• The LBRY v SEC case is expected to set the stage for Ripple’s case and the hearing will be held in the US district court.
• John Deaton, Amicus Curiae in the XRP action, believes that the LBRY litigation is similar to the XRP lawsuit in terms of the argument being presented.
The US Securities and Exchange Commission (SEC) has been at odds with Ripple Labs over the sale of XRP tokens, alleging that they constituted the sale of unregistered securities in violation of federal securities laws. The matter has been ongoing for over two years, with both parties filing numerous motions and the final ruling set to be delivered soon.
The crypto community is both excited and anxious about the eventual decision, with many looking to LBRY v SEC to make a prediction and determine whether Ripple will win the case. The LBRY v SEC case involves the SEC suing LBRY for offering and selling unregistered securities in violation of Section 5 of the Securities Act of 1933.
LBRY, however, claimed that the company was exempt from the Securities Act since their alleged security, the LBC token, was not a security. Instead, according to LBRY, LBC worked as a type of digital currency that is an integral part of the LBRY Blockchain. A hearing in the US district court for the LBRY v. SEC litigation is scheduled, which could potentially set a stage for Ripple’s case.
John Deaton, Amicus Curiae in the XRP action, believes that the LBRY litigation is similar to the XRP lawsuit in terms of the argument being presented. He also believes that if LBRY is successful in its case, it could pave the way for a victory in Ripple’s case.
The outcome of the LBRY v SEC case could have a significant impact on the future of the crypto industry. If LBRY is successful, it could create a precedent that will help Ripple’s case and potentially open the door for other crypto projects. On the other hand, if LBRY is unsuccessful, it could set a dangerous precedent that will make it even more difficult for crypto projects to be successful.
Only time will tell what the outcome of the case will be and how it will affect the crypto industry. Until then, the community can only speculate and wait for the court’s decision.