Prominent cryptocurrency legal professionals have responded to the latest proposal by LBRY in its ongoing legal dispute with the US Securities and Exchange Commission (SEC), citing its potential ramifications for the XRP lawsuit.
LBRY sharing and publishing platform Provide a supplemental summary Supporting its petition to limit the SEC’s remedies against the LBRY.
LBRY emphasized its continued attempts to get answers from the SEC about the use of LBRY Tokens (LBC) as part of their claims. However, the committee chose not to explain the classification of the token and instead followed a general injunction.
Despite a summary ruling in favor of the SEC last year, LBRY has since asked the court to rule that secondary market transactions involving LBC are not securities.
Jeremy Hogan: This ruling carries more weight than most people know
Noted XRP supporter and attorney Jeremy Hogan has warned the XRP community to watch this ruling carefully. According to him, the SEC’s broad injunction request in the LBRY case may be extended to the current lawsuit against Ripple.
“Take this decision seriously! For Ripple’s legal team, this represents a potential scenario in which the SEC seeks an inaccurate and widespread injunction, and Ripple seeks clarification from the presiding judge.”
Attorney Jeremy Hogan
Many cryptocurrency fans believe that the SEC’s claims are rather broad, and the SEC may classify secondary market trades as securities.
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In the matter of the SEC vs. LBRY, Attorney Deaton opposed the SEC’s use of “bypass language” to classify LBC’s secondary market transactions as securities.
He said he was given a copy of the court hearing on Jan. 30, in which the judge clarified that his order did not apply to resale transactions. Deaton has promised to submit the LBRY version of the hearing in the coming weeks.
Bill Morgan, another pro-XRP lawyer, also weighed in on LBRY’s latest move. He said LBRY was asking for basic inquiries about the case at an advanced stage. Morgan believes that the challenge LBRY poses to the SEC’s ability to apply the Howey test to digital assets such as LBC is strong.