4 Reasons Why Ripple Will Be Unaffected by SEC Win Over LBRY

The U.S. Securities and Exchange Commission won another victory over a crypto project this week. The outcome has raised concerns over its battle with Ripple, but things may not be that bad.

Earlier this week, the SEC notched up another enforcement win over a digital asset project. It accused LBRY of selling unregistered securities on its decentralized video publishing platform and won the case.

The crypto community reacted with concern that this could set precedence for the rest of the industry. At the time, the LBRY team warned:

“The language used here sets an extraordinarily dangerous precedent that makes every cryptocurrency in the US a security, including Ethereum.”

Why Ripple Case Is Not The Same

On Nov. 9, CryptoLaw posted ten reasons why the SEC’s latest victory won’t affect Ripple.

10 reasons why the LBRY case should not impact the Ripple case (in order of @JohnDeaton’s livecast) (1/11)

— CryptoLaw (@CryptoLawUS) November 9, 2022

CryptoLaw is a YouTube channel backed by John E. Deaton, who is fighting on behalf of more than 75,000 XRP investors.

Deaton said that the first reason was that the judge was following the SG case. This case from 2003 was brought against a company operating a “virtual stock exchange” that ended up being a Ponzi scheme. The Ripple judge is not following the SG case, he said.

Furthermore, the different cases the SEC has won have been in different circuits, which have different applicable laws. There are 12 regional circuits in the U.S. legal system, organized from the 94 U.S. judicial districts.

The Ripple case is being held in the second circuit, which is Connecticut, New York, and Vermont. The LBRY case was in the first circuit of New Hampshire. Deaton added that the SEC chose an obscure company in a small jurisdiction because “they had a favorable judge and wanted to get a favorable ruling.”

Flawed Reasoning

According to the SEC, it doesn’t matter if the issuer did not promote the asset in any way. Judge Torres, who is presiding over the Ripple case, could find that this is flawed reasoning. Deaton exclaimed:

“In 76 years of case law no investment contract has ever been found when there’s no connection between the purchaser and the seller.”

Furthermore, the XRP Ledger has utility to it. It is supported by MasterCard and Visa and used as a substitute for fiat in some cases.

Finally, several international jurisdictions, such as the UAE, Japan, the UK, Singapore, and Switzerland, have declared XRP is not a security.

The Ripple XRP asset has taken a massive hit during today’s market slump. As a result, it’s down 10% on the day, trading for $0.387 at the time of press.

The post 4 Reasons Why Ripple Will Be Unaffected by SEC Win Over LBRY appeared first on BeInCrypto.

Related Posts

Digital identity platform integrates with zkSync for on-chain KYC

RNS.ID’s on-chain KYC solution is designed on a “privacy engine” to encrypt users’ data. RNS.id, a digital Web3 identity platform developed to support the application and issuance…

European Central Bank blasts Bitcoin —community responds

After the European Central Bank released a blog post on the shortcomings of Bitcoin, the crypto community on Twitter took to the comments to defend the cryptocurrency….

Ukraine to launch CBDC to fight crisis – Will it be based on Stellar Lumens?

Ukraine plans to make its Stellar-based CBDC to support retail cryptocurrency payments.  Stellar has also been partnering with other countries to develop their CBDCs. The National Bank…

Should you start your crypto trading journey?

Interest in digital currencies has increased considerably during the last couple of years, so the vast world of cryptocurrencies lures more and more individuals. Though, there are…

Cardano partners with 2 industry leaders in Web3 – Will it drive ADA price to $2?

Cardano’s commercial arm EMURGO announced investments in OAK Network and SubQuery protocol to expand its footprint in the Web3. The total number of smart contracts built atop…

Bitcoin, Ethereum Technical Analysis: BTC Moves Above $17,000 on Wednesday

Bitcoin moved to $17,000 on Wednesday, as markets continued to digest the U.S. consumer confidence report. Confidence amongst consumers fell to its lowest level since July, despite…

Generated by Feedzy