SEC v. Ripple lawsuit: LBRY notes SEC contradictions in XRP and LBRY cases

Rick Steves

The SEC v. LBRY judge also declined a request from the SEC to move back the trial date, which might mean the LBRY case will be decided before the SEC v. Ripple lawsuit. 

William H. Hinman

LBRY, a blockchain-based file-sharing and payment network, is in the middle of a lawsuit with the Securities and Exchange Commission after being charged, in March 2021, for conducting an unregistered offering of digital asset securities.

The financial watchdog claims LBRY sold digital asset securities called “LBRY Credits” to numerous investors, including investors based in the United States, without registering with the SEC. LBRY allegedly received more than $11 million in U.S. dollars, Bitcoin, and services from purchasers who participated in its offering.

The lawsuit has garnered more attention recently as the SEC tried to include a ruling in the SEC v. LBRY as jurisprudence for the SEC v. Ripple.

SEC tells court in LBRY case that Hinman’s speech is “personal opinion”

With both cases ongoing, LBRY has gone to Twitter to let people know that “the SEC just said in verbal argument in our case that they have NOT asserted that Bitcoin or Ethereum is not a security. They’re saying the Hinman speech is his personal opinion”. 

This has been a much talked about issue in the SEC v. Ripple case as the SEC spent much of the lawsuit arguing that the Hinman’s 2018 speech on Ether was his “personal opinion”, but has now decided to call it “public guidance” once Magistrate Sarah Netburn ruled it as not privileged material.

The motion for partial reconsideration and clarification of Magistrate Judge Netburn’s DPP Ruling was filed last week and a decision will be made soon.

The original ruling was very well received by Ripple and XRP Holders, who were accepted as Amicus Curiae in court. Attorney John Deaton confirmed the court order as a win and said the biggest victory wasn’t the speech draft itself but the notes from meetings with third parties not associated with Ripple.

Attorney Jeremy Hogan recently suspected that the SEC could be hiding “something really bad” and that would be the reason to do whatever it could, including contradicting itself over and over in the “personal opinion” vs “public guidance” duality, so that the documents wouldn’t fall on Ripple’s hands.

On the SEC v. LBRY contradiction, Hogan joked: “Let me read your future: In a couple of months the SEC will say that it was not really his personal opinion but the opinion of the Division of Corp Finance.”

The SEC v. LBRY judge also declined a request from the SEC to move back the trial date, which might mean the LBRY case will be decided before the SEC v. Ripple lawsuit.

Read this next

Institutional FX

Invast Global ramps up its offering with 10 soft commodity CFDs

Sydney-based prime-of-prime provider Invast Global has expanded its offering with the addition of ten soft commodity CFDs, which increases their index and commodity CFD offering to 35 instruments.

Retail FX

FF Simple and Smart Trades says Goodbye to CySEC authorization

The Cyprus Securities and Exchange Commission (CySEC) confirmed that it has wholly withdrawn the Cyprus Investment Firm (CIF) licenses of FF Simple and Smart Trades Investment Services Ltd.

Crypto Insider

Shining the Light in Crypto’s Dark Places

Something changed in regulators’ minds after the November crash of the FTX crypto exchange.

Executive Moves

Financial Commission Adds Sam Low to Dispute Resolution Committee

The Financial Commission (FinaCom PLC), a dispute resolution service that caters to the financial services industry, has appointed Sam Low as the newest member of its Dispute Resolution Committee (DRC).

Digital Assets, Uncategorized

De-facto owner of Bithumb exchange arrested in South Korea

South Korean prosecutors have arrested Kang Jong-Hyun, the anonymous chairman and owner of the country’s largest cryptocurrency exchange, Bithumb, on charges of embezzlement and stock manipulation.

Retail FX

Interactive Brokers volumes snap three-month losing streak

Electronic brokerage firm Interactive Brokers LLC (NASDAQ:IBKR) said its trading volumes rose in January, an indication that investor confidence in the financial markets is rebounding after having been fairly mixed over the past few months.

Digital Assets

VVF invests $5 million in Everscale, a potential Layer 2 solution for Venom blockchain

“For us, this is a strategic investment aimed at the technological development of projects and teams around technologies that we focus on and actively develop. In particular, we are talking about the Venom blockchain project and its ecosystem, which is planned to be launched soon and for which Everscale is a potential Layer 2 solution.”

Institutional FX

FXSpotStream volume ends string of declines on January rebound

Trading volumes on institutional FX platforms surged in January as traders increased their bets on central bankers’ policy with evidence mounting that inflation and economic growth are both losing momentum.

Industry News

DeFi firm Aurox launches SEC-compliant crowdfunding campaign on tZERO

“This is a great opportunity for us to raise capital from our community and the broader public on a leading fully regulated platform. We are confident that the tZERO Markets platform will provide us with the exposure and reach we need to attract a diverse investors to support our business growth.”

<