• The SEC sued Ripple Labs for allegedly selling and distributing unregistered securities in violation of federal securities laws.
• The ongoing case has reached its conclusion with a final ruling set to be delivered.
• The outcome of the LBRY v. SEC case is anticipated to set a stage for Ripple and the defendants in the XRP action.
The U.S. Securities and Exchange Commission (SEC) recently filed a lawsuit against Ripple Labs, the company behind the Ripple protocol, alleging that the company’s sale and distribution of XRP tokens constituted the sale of unregistered securities in violation of federal securities laws. This case has been ongoing for the past two years, with both parties filing numerous motions in the meantime. The matter has now reached its conclusion, with a final ruling set to be delivered.
The Ripple community is both excited and anxious about the eventual decision, as the outcome of this case could have a major impact on the future of Ripple and the XRP token. In this regard, many have been looking to the recent LBRY v. SEC case to make a prediction and determine whether Ripple will emerge victorious in its own lawsuit.
The LBRY v. SEC case is centred around the company’s alleged offering and sale of unregistered securities in violation of Section 5 of the Securities Act of 1933. LBRY argued that the company was exempt from the Securities Act since their alleged security, the LBC token, was not a security. Instead, LBRY claimed that the LBC token worked as a type of digital currency that was an integral part of the LBRY Blockchain.
A hearing in the US district court for the LBRY v. SEC litigation is scheduled to take place shortly. According to John Deaton, Amicus Curiae in the XRP action, the outcome of this case is anticipated to set the stage for Ripple and the defendants in the XRP action. It remains to be seen how the LBRY v. SEC case will ultimately play out and how it will affect the outcome of Ripple’s own case against the SEC.
Regardless, the Ripple community is eagerly awaiting the final ruling in this case, as it could have a major impact on the future of Ripple and the XRP token.