Judge’s Ruling on LBC and LBRY May Impact Ripple Case
On July 11, Judge Paul Barbadoro declined to rule whether the sale of LBC, the native tokens of the LBRY project, constitutes the trading of securities under U.S. laws. This ruling could set a precedence for the presiding Judge in the Ripple case against the SEC.
Key Points:
- Judge Barbadoro’s ruling does not express an opinion on whether the registration rule applies to the sale of LBC in the secondary market.
- LBC is considered a security only when the sale is made directly. In the secondary market, it is not classified as a security.
- The Ripple-SEC lawsuit is ongoing, with Ripple claiming the SEC has failed to provide sufficient evidence that XRP is a security.
- The LBRY case ruling could guide how Judge Torres will rule in the Ripple case.
- Ripple CEO Brad Garlinghouse is optimistic about winning against the SEC’s aggressive crackdown on cryptocurrency projects.
Hot Take: The ruling on the LBRY case could have significant implications for the Ripple case, as it may influence how Judge Torres views the classification of XRP as a security. Despite the ongoing legal battle, Ripple remains confident in their position.
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