One of the last hearings in the U.S. Securities and Exchange Commission (SEC) Vs LBRY lawsuit has opened the doors for the Ripple and defendants involved in the XRP lawsuit. The recent developments have left XRP holders’ lawyer more confident about Judge rejecting SEC’s Summary Judgment motion.
Ripple has upper hand in XRP lawsuit
Attorney John Deaton highlighted that US SEC lawyers and staff have been talking about the tokens themselves as being securities. While Bitcoin (BTC) is a digital asset that was once packaged, marketed, offered, and sold as an investment contract. However, this is known as a Security.
It is important to note that if BTC was used as a Security by someone, didn’t turns Bitcoin into a Security. The attorney stated that in the XRP lawsuit, the logic remains the same. He bought up Ripple’s case of offering or selling XRP as an investment contract at some point down the lane.
However, if even today Ripple repeats the same process, still it won’t make XRP a security and XRP will remain a digital code. As per details, Judge in the LBRY case ruled that the LBRY token was sold as an investment contract when it made direct sales.
Will Judge rule in favor of Ripple?
The attorney mentioned that if the Judge believed that the token itself was a security then the statement would include subsequent sales of the token. However, the Judge stated that his ruling does not apply to a subsequent sale of LBC tokens.
This turns out to be the most important reason why Court’s clarification was much needed for the crypto holders. However, the commission can still go after direct sales of a token by a promoter. Meanwhile, the underlying asset is never the security in an investment contract case.
As per Amicus Curiae in the XRP lawsuit, the recent development makes him confident that Judge will deny the SEC’s Summary Judgment motion.
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