Attorney John Deaton Joins LBRY Lawsuit as Amicus Curiae
Attorney John Deaton, who is well-known for representing XRP Ripple (XRP) token holders in their legal battle against the SEC, has filed a formal notice of appearance as an Amicus Curiae in the LBRY lawsuit. This comes after LBRY filed an appeal notice to contest the final judgment that ordered them to pay a civil penalty and prohibited their engagement in unregistered offerings of digital currency securities.
Deaton’s Notice of Appearance
Deaton submitted his Notice of Appearance on behalf of Amicus Curiae Naomi Brockwell. Both Deaton and Brockwell are co-founders of Cryptocurrency Law, a platform that provides updates on legal and regulatory developments related to digital assets. Deaton confirmed this development with a tweet, stating, “Win, lose or draw, we will be in the fight!”
The SEC’s Scrutiny of LBRY
In March 2021, the SEC argued that LBRY Credit token (LBC) was a security under the 1933 Securities Act, initiating its scrutiny of LBRY. In November 2022, a New Hampshire District Court ordered LBRY to pay $22 Million to the SEC, considering LBC an unregistered security based on the Howey test.
Challenging the Ruling
LBRY challenged the ruling, arguing that the $22 Million penalty did not account for legitimate business expenses. The SEC requested a reduced penalty due to LBRY’s insolvency, resulting in a revised sum of $111,614. Regardless of intends to cease operations gradually, recent legal victories by Ripple and Grayscale against the SEC have given LBRY hope for a favorable outcome in their appeal.
Hot Take: John Deaton Joins LBRY Lawsuit as an Advocate for Cryptocurrency Community
Attorney John Deaton’s decision to participate in the LBRY lawsuit as an Amicus Curiae demonstrates his commitment to representing the interests of the cryptocurrency community. With his experience in the legal battle against the SEC on behalf of XRP Ripple (XRP) token holders, Deaton brings valuable expertise to the case. The involvement of Cryptocurrency Law co-founders Deaton and Brockwell further solidifies their dedication to providing updates on legal and regulatory developments in the digital asset space. This development raises hopes for a positive outcome for LBRY in their appeal, especially in light of recent legal victories by other cryptocurrency entities against the SEC.
Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.