• John E. Deaton scored a major win for the crypto industry, the XRP community and Ripple yesterday in the remedies hearing of the LBRY vs SEC case.
• The SEC declared that they do not consider secondary sales of LBC tokens as securities, while the judge confirmed he would clarify that in the final remedy.
• Following this news, LBC token prices rose up to 155%, showing what could happen to XRP if Ripple wins its case against SEC.
John E. Deaton’s Win for Crypto Industry
Attorney John E. Deaton scored a massively significant victory for the entire crypto industry, the XRP community as well as Ripple yesterday by appearing as an amicus in the remedies hearing between LBRY and U.S Securities and Exchange Commission (SEC).
SEC Declares No Secondary Sales are Securities
The SEC declared “live and on tape” that it does not consider secondary sales of the LBC token as securities. In addition, New Hampshire District Court judge confirmed that he would clarify in the final remedy that he does not rule on the secondary market.
Positive Impact on Token Prices
This meant massively good news for LBC token holders, since previous ruling would have jeopardized its existence independent of LBRY company. As a result of this news, prices rose up to 155%. At press time, price stood $0.024913 with a spike of 120%.
Potential Impact on XRP Price
The rise in LBC token price following yesterday’s partial victory by LBRY against SEC may be a foreshadowing of what will happen to XRP price if Ripple wins its case against SEC and there is regulatory clarity around it. When lawsuit was filed by SEC against Ripple in December 2020, XRP price plummeted -72% from $0.60 to $0.17 due to high risk associated with it – further showing relative weakness against other cryptocurrencies such BTC & ETH compared to their all-time highs (-88%).
A potential win by Ripple could trigger euphoria among investors resulting them increasing their XRP holdings which can lead to significant increase in price as seen with LBC after winning partially against SEC – according Bill Morgan (XRP Community lawyer).