- 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.
Also read: Classic Remake: Terra proposes recoupling LUNC and UST months after collapse
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.
Coinbase should relist $XRP.— LBRY (@LBRYcom) February 1, 2023
Under the SEC vs LBRY standard, $XRP sold by secondary holders is not a security.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Follow us on Telegram
Stay updated of all the news
Mastercard to settle stablecoin transactions in Asia-Pacific region with Australian platform
Stablecoins have long been considered the safer option for bringing crypto to the world. However, the recent few instances of stablecoin collapses have raised concerns regarding the same as well. Even so, Mastercard is attempting to widen its reach in the Asia-Pacific (APAC) region.
How IMX could respond to Immutable's new partnership with Polygon Labs as gaming tokens trend this week
Immutable X and Polygon Labs have partnered for Web3 game development acceleration. The partnership comes ahead of launching a zkEVM-powered platform for studios and developers and a day into the GDC. The news could fuel a 43% upswing for IMX as the hype around gaming tokens continues.
Bitcoin price nears $30,000 despite banking crisis; First Republic Bank crashes by 47% in a day
Bitcoin price has managed to pull itself away from the narrative of being correlated to the United States stock market and macroeconomic conditions. The biggest cryptocurrency in the world has been rallying for more than a week now despite the ongoing banking crisis in the country, which is close to bringing down another bank.
MANA eyes 21% gains thanks to the world’s largest event for the art and science of game making
Decentraland price is on a 10-day uptrend as it moves diagonally along an ascending trendline. MANA could ascend 21.68% from the current price to tag the $0.7330 resistance level last tested on February 21. The bullish thesis could be invalidated if the gaming token drops below the uptrend line at $0.6015.
Weekly Recap: Bank runs, stablecoin drama, Voyager bankruptcy hearing, threat to DOX Shiba Inu founder
US bank runs sent shockwaves through market participants, traders turned to Bitcoin and the “safe haven” narrative made a comeback. Binance’s $1 billion acquisition of bankrupt crypto lender Voyager is back on track with a ruling from a New York bankruptcy judge.