Ripple Labs and XRP Community Back SEC Commissioner's Critique on LBRY Lawsuit
Summary:
Ripple Labs' Chief Legal Officer, Stuart Alderoty, and supporters of XRP have used the X app to voice their support for SEC Commissioner Hester Peirce's criticism of perceived unjust treatment in the LBRY lawsuit. Peirce released a dissenting statement regarding the lawsuit and other recent SEC actions against crypto exchanges. LBRY, found to have breached Section 5 of the Securities Act of 1933, subsequently shut down due to financial and regulatory pressures. Pro-XRP lawyer John E. Deaton also expressed his opposition to the SEC's actions, supporting Peirce's criticism and suggesting the submission of an amicus brief.
Ripple Labs' Chief Legal Officer, Stuart Alderoty and XRP fans have publicly expressed their support for Commissioner Hester Peirce of the Securities Exchange Commission via the X app (previously known as Twitter). They agreed with her criticism of perceived unfairness in the LBRY lawsuit. Alderoty thanked Commissioner Peirce and proposed that when continuous perceived unfair treatments occur in instances where fraud is non existent (particularly when consumers are still awaiting redress for actual fraudulent activities), it might be necessary to overlook standard regulations and voice concerns more urgently and strongly, possibly with an amicus brief.
Commissioner Peirce released a disagreeing statement on October 27 concerning the LBRY lawsuit, noting the agency's recent flurry of legal actions against crypto exchangers like Ripple, LBRY, Kraken, Binance, and Coinbase.
Among the several enforcement actions taken by the SEC, Peirce singled out the lawsuit against LBRY as being especially troubling, but she was unable to publicly comment on the ongoing case.
LBRY, renowned for its blockchain-powered file-sharing and payment network, was determined to have breached Section 5 of the Securities Act of 1933 in July. As a result, LBRY was banned indefinitely from participating in any unregistered crypto securities offerings involving its native digital currency.
Despite initially trying to challenge the SEC's judgment, LBRY eventually gave up due to perceived hopelessness. The XRP community, notably, supported LBRY throughout the legal proceedings, including their appeal. Nevertheless, following the conclusion of litigation in the SEC's favor, LBRY chose to shut its doors, citing financial difficulties and regulatory hurdles as the reasons.
John E. Deaton, a lawyer who supports XRP, suggested submitting an amicus brief in response to the Commissioner's remarks. Deaton opines that just as tens of thousands of individual investors expressed their views in court, it is crucial to have someone with insider knowledge speaking in a legal setting.
Deaton has voiced his discontent with the SEC's actions against the company which he perceives have caused financial hardship, a sentiment echoed by Commissioner Peirce's explicit commentary.
Published At
10/28/2023 7:46:28 AM
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