LBRY Ruling Sparks Speculation in Ripple Community
In a recent ruling, United States District Judge Paul J Barbadoro found LBRY, a cryptocurrency platform, in violation of the United States Securities and Exchange Commission’s (SEC) Act. This has led to speculation within the XRP and Ripple community about the potential impact on the ongoing SEC vs. Ripple lawsuit.
Key Points:
- LBRY ordered to cease participation in unregistered offerings of crypto asset securities
- Civil penalty of approximately $111,614k imposed on LBRY
- Possible injunctive relief in Ripple case may enjoin sales from escrow
- Court would need to determine XRP sales as investment contracts for comparable relief
- Implications of ruling on Ripple’s XRP escrow holdings could be devastating
Legal analyst Jeremy Hogan has analyzed the LBRY case in relation to the SEC vs. Ripple lawsuit and highlighted potential similarities. If Judge Torres, presiding over the Ripple case, issues a similar ruling, it could have severe consequences for Ripple. The XRP and Ripple community is anxiously awaiting the final ruling in the SEC vs. Ripple case, preparing for potential adverse outcomes following the LBRY ruling.
The LBRY case sets a precedent and underscores the importance of the court’s determination on whether XRP sales are considered investment contracts. This ruling has intensified concerns within the Ripple community. As the outcome of the SEC vs. Ripple lawsuit approaches, the community remains on alert for any potential repercussions that could impact Ripple and its XRP holdings.
Hot Take:
The LBRY ruling has raised significant concerns within the Ripple community, with the potential for a similar ruling in the SEC vs. Ripple case. If XRP sales are deemed investment contracts, Ripple’s escrow holdings could be severely affected. The community is anxiously awaiting the final ruling, hoping for a positive outcome but also preparing for potential adverse consequences.
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