LBRY Ruling

The latest court verdict in the US SEC vs LBRY case has prompted fresh debate. The current XRP developments, however, centre on whether or not the SEC can utilise the victory as evidence in the XRP litigation.

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Is the LBRY Decision negative for XRP?

In a recent ruling, a New Hampshire court rejected an argument that LBRY had presented LBC as a security, as reported by attorney James Filan. But the Fair Notice Defense is invalid. According to the judge, there is no way a fair and impartial trier of fact could rule against the SEC’s claim that LBRY portrayed LBC as a security.

He continued, saying that the court had stated LBRY lacked fair notice and did not have a defence that could be tried. And this is why SEC is entitled to a win in court.

Fox Business’ Eleanor Terrett quoted CEO Jeremy Kauffman as saying the verdict sets a dangerous precedent for the whole US bitcoin business. He emphasised that the precedent created by SEC v. LBRY means that virtually all cryptocurrencies, including Ethereum and Dogecoin, are securities.

He continued by saying that a body even more untrustworthy than the SEC now controls the fate of Bitcoin in the country.

The impact on the pending Ripple litigation.

According to SEC lawsuit amicus curiae John Deaton, this verdict is disastrous. He argued that the ruling is simply one district judge’s application of the law to a single case.

Deaton emphasised that the defence attorney had not challenged Howey’s second element, which called for evidence of a joint venture. Nonetheless, they failed to even request that the judge differentiate between sales made through the secondary market and those made directly by the company.

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Source: Google Trend

By Vil Joe

A writer and editor based out of San Francisco, Vil has worked for The Wirecutter, PCWorld, MaximumPC and TechHive. Her work has also appeared on InfoWorld, MacWorld, Details, Apartment Therapy and Broke-Ass Stuart. In her spare time, she takes too many pictures of her cats, watches too much CSI and obsesses over her bullet journal.

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