Is Ripple XRP Behind? The SEC’s legal victory against LBRY is a ‘big idea’ for all cryptocurrencies | Media Pyro


SEC and cryptocurrency brands
“I hope this case will be part of the SEC’s final statement on the Ripple case,” Hogan’s lawyer said. — Shutterstock

The Securities and Exchange Commission (SEC)’s victory against blockchain startup, LBRY, has set a “very negative outlook” for all cryptocurrencies, LBRY warning.

On Monday, a New Hampshire judge sided with the regulator, ruling that LBRY’s issuance of its original LBC symbol was a sale of unregistered securities.

The 19-month-long suit centers on the same question at the heart of the most famous case, SEC vs. Ripple Labs, and the ongoing debate about cryptocurrencies as banks.

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Ripple (XRP) to US dollars

Previous article threatens the entire US cryptocurrency industry

The SEC filed a complaint against LBRY in Federal Court in New Hampshire for failure to register their offering last March. LBRY pushed back against the claim, saying it did not sell LBC as a security and that the SEC did not properly disclose the sale under securities laws.

Summary hearing was held in July. After the trial, the CEO of LBRY, Jeremy Kauffman, warned that the SEC information could mean that anyone who buys any cryptocurrency, including ETH, in the USA, is against the law.

On Monday, the Court rejected both of LBRY’s arguments for granting summary judgment to the SEC.

Federal Judge Paul Barbadoro, of the District Court for the District of New Hampshire, ruled that “no reasonable person can reject the SEC’s allegation that LBRY offered LBC as security, and there is no defense LBRY as there is no right. notice, the SEC has jurisdiction to sue. The SEC’s Motion for Summary Judgment is granted.”

After Kauffman’s decision, and repeated he warned: “The SEC vs LBRY case will set a precedent that threatens the entire US cryptocurrency industry,” he said. wrote after the decision.

“Under this standard, almost all cryptocurrencies, including Ethereum and Doge, are safe. The future of crypto now rests with a worse party than the SEC: the US Congress,” Kauffman concluded.

Ethereum (ETH) to US dollars

Ripple (XRP) effect

Echoing the views of Kauffman, attorney Jeremy Hogan, partner at Hogan & Hogan, said on the issue: “LBRY fought the good fight but lost on summary decision. The Judge hung his hat on the fact that there was no benefit to the marks at the time of sale.

“I hope this case will be included in the SEC’s final statement on the Ripple case.”

The SEC is currently in a nearly two-year dispute with XRP issuer, Ripple Labs. In December 2020, the SEC sued Ripple Labs alleging that the company raised $1.3 billion by selling XRP, which the watchdog called an unregistered bank.

As regulators and crypto firms around the world work to establish a legal framework for cryptocurrencies, the legal status of digital assets is often lacking.

In the US, it has not yet been confirmed which regulatory body will be in charge of overseeing the cryptocurrency market.

SEC chairman Gary Gensler said that “nothing about the crypto markets violates securities laws, almost all cryptocurrencies are securities.”

At the time, a questionable bill authored by US Senators Debbie Stabenow, Democrat of Michigan, and John Boozman, Republican of Arkansas, revealed how the SEC’s partner, the Commodity Futures Trading Commission (CFTC), would manage in cryptocurrencies.

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