The long-awaited ruling in the LBRY case concluded yesterday, leaving Ripple and the XRP community in a state of uncertainty. The court decision, issued on July 11, resolved the case between the Securities and Exchange Commission (SEC) and LBRY Inc., a decentralized content-sharing platform.
The LBRY team took to Twitter to announce the final ruling, revealing their compliance with the court order to fully dissolve LBRY Inc. They emphasized that the future of LBRY now rests in the hands of the community. However, this ruling has raised concerns about its potential impact on Ripple and the digital asset, XRP.
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Lawyer Jeremy Hogan, well-known for his involvement in the XRP community, shared his insights on the LBRY case and its possible implications for Ripple. He highlighted that the LBRY court ruling did not address secondary sales or the Major Questions Doctrine. Instead, it primarily focused on halting further violations and issuing a penalty.
Ripple and XRP Face Uncertainty as LBRY Judgment Sets Precedent
The recent LBRY case ruling has left Ripple and the XRP community on edge as they await their own judgment. On Tuesday, July 11, the court reached a decision in the case involving LBRY Inc., a decentralized content-sharing platform, and the Securities and Exchange Commission (SEC).
LBRY announced the final ruling on Twitter, stating that they will fully dissolve LBRY Inc. as per the court order. They emphasized that the fate of LBRY now rests in the hands of the community. However, this ruling has raised concerns about its potential impact on Ripple and the digital asset XRP.
The final judgement in SEC vs LBRY is out.
In accordance with the court's order and our promises, we expect to spend the next several months winding LBRY Inc. down entirely.
As to what happens to LBRY from here, well, that's up to you. pic.twitter.com/cU8O3nATT6
— LBRY 🚀 (@LBRYcom) July 11, 2023
Lawyer Jeremy Hogan, who is closely associated with the XRP community, shared his insights on the LBRY case and its implications for Ripple. He noted that the LBRY court ruling did not address secondary sales or the Major Questions Doctrine. Instead, it focused on halting further violations and imposing penalties.
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Hogan suggested that a similar outcome is possible in the ongoing Ripple case, but he outlined two crucial conditions. First, the court would need to determine that the Fair Notice Defense is insufficient to warrant a trial. Second, the court would have to establish that both past and present sales of XRP qualify as investment contracts.
“In conclusion, this ruling (and indeed this case) provides little market guidance and has “protected” no one. In fact, it hurt ALL the people involved. It’s just another feather in the SEC hat. That’s all,” Jeremy Hogan said.
Conclusion
The LBRY case ruling has set a precedent for the ongoing SEC case against Ripple. The outcome of the Ripple case is still uncertain, but the LBRY ruling suggests that the SEC may be successful in its case. The Ripple community is anxiously awaiting their own judgment, hoping for clarity and a favorable outcome.
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