SEC Wins Case Against LBRY, Sparks Hope for XRP Community

• The US Securities and Exchange Commission (SEC) won a case against LBRY Credits in November, ruling that the LBC token was an investment contract.
• In a recent win for the LBRY community, the judge clarified that the ruling did not include secondary market sales.
• This ruling has ignited hope for the XRP community, who are facing a similar lawsuit from the SEC.

The US Securities and Exchange Commission (SEC) has been cracking down on crypto projects and companies for allegedly selling unregistered securities. In November, the SEC won a case against LBRY Credits, ruling that the LBC token was an investment contract. This ruling raised questions about the legitimacy of the secondary cryptocurrency market, as the SEC could have used this ruling to assert its authority.

However, in a recent win for the LBRY community, the judge clarified that the ruling did not include secondary market sales. Attorney John Deaton presented the case before the judge, arguing that the SEC failed to distinguish between the company’s management, users, and the token. After hearing Deaton’s argument, the judge ruled that the order given in November did not apply to secondary market sales.

This ruling has ignited hope for the XRP community, who are facing a similar lawsuit from the SEC. The regulator has accused Ripple and its executives of selling unregistered securities. It is yet to be seen if the LBRY ruling will have any effect on the XRP lawsuit.

The LBRY vs. SEC case has shown that crypto projects can still win against the SEC. It is also a reminder of the importance of legal representation for crypto projects, as attorneys are essential for defending crypto projects in court. With this ruling, the crypto community is hopeful that the XRP lawsuit will have a favorable outcome for the XRP community.