XRP Community Supports SEC Commissioner in LBRY Case

Ripple Labs’ chief legal officer, Stuart Alderoty, and members of the XRP community have voiced their support on X (previously Twitter) for United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce’s posture against perceived “injustice” in the LBRY lawsuit.

Alderoty thanked Peirce and suggested that when ongoing injustices occur in non-fraud cases, particularly when consumers are still awaiting resolution for fraud cases, it may be necessary to disregard standard protocols and raise concerns more vocally and promptly, possibly even by submitting an amicus brief.

On October 27, the SEC commissioner stated opposition to the LBRY lawsuit. Peirce emphasized that the commission has recently initiated a multitude of enforcement actions against cryptocurrency exchanges, including Ripple, LBRY, Kraken, Binance, and Coinbase.

Peirce stated that the LBRY lawsuit was especially troubling to her, but she was unable to discuss it due to ongoing litigation. In July, it was determined that the blockchain-based file-sharing and payment network LBRY had violated Section 5 of the Securities Act of 1933.

Consequently, LBRY was perpetually prohibited from directly or indirectly engaging in unregistered securities offerings involving its native token.

Initially, the crypto platform intended to appeal a decision by the U.S. SEC but subsequently abandoned the effort. During the legal procedure, including the appeal, the XRP community supported the platform.

However, as the litigation concluded in favor of the SEC, LBRY decided to wind down, citing financial burdens and regulatory pressure as the reasons.

In response to the commissioner’s statement, pro-XRP attorney John Deaton suggested it may be time to file an amicus brief. Deaton believes that, just as 75,000 individual holders have expressed their opinions in court, someone with insider knowledge must do the same.

Deaton disapproved of the SEC’s actions against the corporation, which he believed caused financial distress.