Prominent legal professionals specializing in crypto have responded to the recent motion filed by LBRY in its ongoing legal dispute with the US Securities and Exchange Commission (SEC), citing its possible repercussions on the XRP lawsuit.
The sharing and publishing platform LBRY filed a supplementary brief supporting its petition to limit the remedies sought by the SEC in SEC vs. LBRY.
LBRY emphasized its ongoing attempts to get answers from the SEC on using LBRY Tokens (LBC) as part of their claims. However, the commission chose not to explain the token’s categorization and instead pursued a general injunction.
Despite a favorable summary judgment verdict for the SEC last year, LBRY has since asked the court to rule those secondary market transactions involving LBC are not securities.
Jeremy Hogan: this verdict has more weight than most know
Lawyer and renowned XRP supporter Jeremy Hogan has warned the XRP community to watch this verdict carefully. According to him, the SEC’s broad injunction request in the LBRY case might be extended to the current litigation against Ripple.
“Take this decision seriously! For Ripple’s legal team, this represents a potential scenario in which the SEC seeks an imprecise and broad injunction, and Ripple seeks clarity from the presiding judge.”Lawyer Jeremy Hogan
Many crypto fans think the SEC’s claims are rather broad, and SEC may classify secondary market trades as securities.
In the matter of the SEC vs. LBRY, attorney Deaton opposed the SEC’s use of “overreaching language” to classify secondary market transactions of LBC as securities.
He said he had the transcript from the court hearing on Jan. 30, in which the judge clarified that his injunction does not apply to resale transactions. Deaton has promised to provide the LBRY hearing transcript in the coming weeks.
Bill Morgan, another pro-XRP attorney, also weighed in on LBRY’s latest move. He said LBRY is asking basic inquiries about the case at an advanced stage. Morgan thinks the challenge presented by LBRY to the SEC’s ability to apply the Howey test to digital assets like LBC is a strong one.