After the U.S. District Court for the District of New Hampshire decided that LBRY sold its LBC token as an unregistered security, the P2P content distribution network LBRY revealed its defeat against the U.S. Securities and Exchange Commission(SEC) in a recent tweet. The team behind the initiative continued by saying that they would “lick their wounds for a little bit” but would not give up. LBRY was sued by the regulatory body for selling unregistered securities only a few months after Ripple(XRP) was subject to a similar complaint.
In the month of June, LBRY predicted that the case will significantly affect Ripple and the broader cryptocurrency market. The SEC will utilize the decision to strengthen its position, thus the triumph is likely to have a big impact on the Ripple case.
On November 9, CryptoLaw posted eight justifications for why the SEC’s most recent victory won’t have an impact on XRP. According to Deaton, the judge’s attention was first drawn to the SG case. This 2003 lawsuit was filed against a business that ran a “virtual stock market” that turned out to be a Ponzi scheme. He said that the Ripple judge was not monitoring the SG case.
Additionally, the SEC has won lawsuits in a variety of circuits, each of which has its own set of applicable statutes. The 94 U.S. judicial districts make up the 12 regional circuits that make up the American legal system.
The second circuit, which includes Connecticut, New York, and Vermont, is where the Ripple case is currently being heard. The LBRY case was heard in New Hampshire’s first circuit. According to Deaton, the SEC selected a mysterious business in a tiny area because “they had a favorable judge and wanted to get a positive finding.”
The Ripple XRP asset has been severely damaged by the current market downturn. As a result, it is currently selling for $0.387 at the time of publication, down 10% on the day.