- LBRY Inc. voices support for XRPLedger’s native token XRP and calls for the altcoin’s relisting on Coinbase.
- XRP proponent Attorney John Deaton believes Judge Torres will deny the SEC’s summary judgment notion in Ripple’s case – regulator has overreached.
- Deaton argues that the LBRY Inc. hearing was important for all crypto holders as it addresses SEC’s limitations and supports Ripple’s case.
LBRY Inc. reaffirmed its support for XRP and called for a re-listing of the token on Coinbase. The SEC recently settled its lawsuit against LBRY Inc. and the presiding District Judge concluded that LBC tokens sold in the secondary market are not securities.
Attorney John Deaton stated that in the LBRY Inc ruling, the Judge gave an example on record, stating that LBRY Inc’s sale of LBC to Flipside Crypto constituted an offer and a sale of an unregistered security. This does not apply to any of the subsequent LBC sales.
Deaton draws parallels between the US Securities and Exchange Commission’s (SEC) lawsuit against LBRY Inc. and cross-border remittance firm Ripple.
XRP gathers support from LBRY Inc. and XRP Army
The US SEC filed a lawsuit against cross-border payment giant Ripple in 2020. The news of the lawsuit was followed by a series of delisting announcements by cryptocurrency exchanges like Coinbase, leaving XRP holders with a handful of markets to trade the token.
The news of SEC’s settlement of its lawsuit against LBRY Inc. has filled XRP holders with hope for a positive outcome in the SEC v. Ripple lawsuit. After dragging on for two long years, both parties are awaiting an outcome.
John Deaton, an XRP proponent, and the attorney who founded CryptoLaw media, has supported the Ripple community since the beginning of the legal battle. Deaton was present in court as “amicus” during the LBRY Inc. ruling. The judge’s statements on record made it clear that LBC token is not a security. The secondary-market sales of LBC token do not constitute a violation of the securities law.
Deaton argues that the same premise applies to XRP. While payment giant Ripple sold XRP to several investors, those transactions may or may not be investment contracts or the sales of unregistered securities. XRP token in itself, is code, it is a digital asset.
Practically speaking, the Judge rejected the SEC’s embodiment theory that it first articulated in the @Ripple case when the SEC responded to the Motion to Intervene that I filed on behalf of #XRPHolders.— John E Deaton (@JohnEDeaton1) February 3, 2023
Here is the theory in the SEC’s own words: pic.twitter.com/6qcq6ogESW
XRP is “not a security” similar to LBC, and neither are the token’s secondary-market sales.
LBRY Inc. and the XRP Army are therefore asking for the altcoin’s re-listing on Coinbase, one of the largest cryptocurrency exchange platforms.
John Deaton criticizes the SEC’s overreach
Deaton argues that the US financial regulator, SEC has overreached in its case against Ripple. The friend of court clarifies the fact that the regulator is attempting to expand its jurisdictional reach to secondary market transactions.
SEC’s embodiment theory first articulated in Ripple’s case
As in the case of Ripple, the SEC’s embodiment theory called secondary-market sales an investment contract.
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