Friday, 8 December 2023

Crypto News

Ripple CLO and XRP community back SEC commissioner’s LBRY lawsuit dissent

Ripple CLO and XRP community back SEC commissioner’s LBRY lawsuit dissent

Stuart Alderoty, the Chief Legal Officer (CLO) of Ripple Labs, and the XRP community have expressed their support on the X app (formerly Twitter) for Securities Exchange Commission(SEC) Commissioner Hester Peirce’s stance against the perceived “injustice” in the LBRY lawsuit.

Alderoty showed gratitude toward Commissioner Peirce and suggested that when ongoing injustices occur in non-fraud cases, especially when consumers are still awaiting resolution for actual fraud cases, it might be necessary to disregard standard protocols and raise concerns more vocally and promptly, potentially even by submitting an amicus brief to address the issue.

The SEC Commissioner issued a dissenting statement regarding the LBRY lawsuit on October 27. Peirce emphasized that the commission has recently initiated numerous enforcement actions against cryptocurrency exchanges such as Ripple, LBRY, Kraken, Binance, and Coinbase.

Peirce, among the many enforcement actions taken by the SEC, noted that the LBRY lawsuit was particularly disconcerting to her. However, she expressed her inability to publicly discuss it due to the ongoing litigation.

Back in July, LBRY, a platform recognized for its blockchain-based file-sharing and payment network, was determined to have violated Section 5 of the Securities Act of 1933. Consequently, LBRY was permanently barred from engaging, whether directly or indirectly, in any unregistered cryptocurrency securities offerings involving its native token.

The crypto platform initially sought to appeal a judgment by the U.S. SEC but later abandoned the effort due to perceived futility. Notably, the XRP community supported the platform during the legal process, including the appeal. However, with the litigation concluding in the SEC’s favor, LBRY decided to close down, citing financial burdens and regulatory pressure as the reasons for its shutdown.

Related:Community reacts to SEC dropping XRP case and LBRY shutdown

Pro-XRP lawyer, John E. Deaton, in response to the Commissioner’s statement, suggested that it might be time to submit an amicus brief. Deaton believes that just as 75 thousand individual holders expressed…

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