Key takeaways :
- Ripple Labs’ Chief Legal Officer backed Hester Peirce’s position on the LBRY lawsuit, emphasizing industry injustices.
- Commissioner Peirce expressed concerns about the SEC’s actions against crypto exchanges, including Ripple and LBRY.
In a recent development within the XRP community, Ripple Lab’s Chief Legal Officer (CLO), Stuart Alderoty, expressed his support for SEC Commissioner Hester Peirce’s critique of the LBRY lawsuit, commending her for condemning what she described as an “injustice” in the case.Â
Alderoty took to the XRP community to express his gratitude to Commissioner Peirce and raised an essential point about addressing ongoing injustices, especially in non-fraud cases, while consumers still await resolution for fraud cases. He suggested that, in such situations, it may be necessary to deviate from standard protocols and voice concerns more actively and promptly, possibly even by submitting an amicus brief to address the issue.
On October 27, Commissioner Hester Peirce of the Securities and Exchange Commission (SEC) shared her thoughts on the SEC’s treatment of LBRY, a blockchain-based file sharing and payment network. In her statement, Peirce underscored that LBRY possessed a functioning blockchain with a tangible real-world application, making its targeting by the SEC a point of contention.
She lamented the Commission’s role in the downfall of LBRY, which ultimately led to the company’s closure after an unfavorable court decision. Notably, Commissioner Peirce highlighted that the SEC had recently launched multiple enforcement actions against cryptocurrency exchanges, including Ripple, LBRY, Kraken, Binance, and Coinbase.Â
However, it was the LBRY lawsuit that particularly troubled her, prompting her to speak out against the perceived injustice.
Back in July, LBRY, recognized as a blockchain-based file-sharing and payment network, was adjudged to have violated Section 5 of the Securities Act of 1933. As a result, LBRY received a permanent injunction preventing it from any direct or indirect involvement in unregistered cryptocurrency securities offerings through its native token.
Initially, LBRY had attempted to challenge the SEC’s judgment through an appeal, but the company eventually abandoned its efforts, citing a perceived lack of success. Throughout this legal ordeal, the XRP community had been a steadfast source of support for LBRY, standing by the company even during its appeal process.
Nonetheless, with the litigation ultimately concluding in favor of the SEC, LBRY found itself compelled to make the challenging decision to cease its operations. This decision was primarily attributed to the weight of financial constraints and regulatory pressures.
