In the LBRY case, the judge has confirmed a violation of securities laws, ratifying the agreement reached after an appeal hearing.
Initially, the SEC proposed a settlement amount of $22 million, which was later revised to $111,000 considering LBRY’s financial situation. The revised settlement amount has been approved by the judge as part of the ruling.
Binary Distinction Made in LBRY Case Regarding Sale of LBC Token
In the LBRY case, the judge determined that the sale of LBC tokens directly by the issuing company violated securities laws during their initial issuance. However, the ruling did not address whether the subsequent trading of LBC tokens between traders on exchanges violated securities laws. The focus of the verdict was primarily on the initial issuance of the tokens by the company.
Following the distinct outcome of the LBRY case, speculation regarding the Ripple case has intensified. Lawyers analyzing the situation suggest that the LBRY case could potentially serve as a precedent for Ripple. They emphasize that the outcome of the Ripple case may not result in a complete win or loss; instead, there are areas where Ripple could experience both victories and setbacks. The analysis highlights the nuanced nature of the legal proceedings for Ripple.
Hogan Disappointed with LBRY Case Verdict: Calls for Clarity in Cryptocurrency Law
Attorney Jeremy Hogan expressed disappointment with the LBRY case verdict, highlighting the judge’s limited understanding of cryptocurrency-related matters. Hogan emphasized that the ruling did not sufficiently address whether cryptocurrencies should be classified as securities. His critique underscores the importance of clearer legal interpretations to navigate the complexities of cryptocurrency law.
Lawyer John E. Deaton expressed his view that it was a positive outcome that the court did not categorize the sale of LBRY tokens in the secondary markets as a “violation of securities laws” and refrained from providing an opinion on the matter. Deaton acknowledged this as a better-than-nothing situation, implying that it could be seen as a favorable aspect of the court’s decision.
Ripple CTO David Schwartz expressed satisfaction, considering it a victory, that the court did not classify the normal usage of the LBC token as a violation of securities laws. This recognition implies that the regular utilization of the token is considered permissible within the legal framework, providing a positive outcome for the case.
It's at least a victory that it was made clear that ordinary use of the token doesn't violate the injunction.
— David "JoelKatz" Schwartz (@JoelKatz) July 12, 2023
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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