In the recent tweet shared by the XRP’s law expert, attorney John Deaton noted that the upcoming hearing between open-source content distribution company LBRY and the SEC is an “incredibly important hearing for all crypto.”
A Hearing For Crypto To Hold Soon
Per the expert, the hearing was slated to take place on January 30 at 3 PM at the Warren B. Rudman United States Courthouse in New Hampshire. He reiterated that he filed an appearance and amicus curiae on behalf of tech journalist Naomi Brockwell in the upcoming hearing.
It bears mentioning that the Investors Choice Advocates Network also filed an amici curiae brief supporting LBRY in the lawsuit. According to attorney Deaton, LBRY and the amici are requesting that the Judge clarify that the company’s native token, LBC, is not a security.
Furthermore, LBRY and Amici want the Judge to state that the November ruling that went in the SEC’s favour does not include secondary market transactions.
However, the upcoming hearing is important for the whole crypto space reason being that a win for the SEC would imply that the secondary market transactions of all coins and tokens could be illegal in the U.S.
Attorney John Deaton noted that he is not seeing any assurance that crypto regulation any time soon and in this view, he said in the Twitter thread that the earliest time the industry could get rational rules would be in the first half of 2025.
For Deaton, judicial results from the LBRY and Ripple lawsuits are the only way the industry could get guidance through the SEC’s regulation by enforcement policy.
“In other words, guidance will come by Federal District Court decisions like LBRY, Ripple, Dragonchain, etc.,” he said.
It is worth noting that the summary judgement decision is on the side of the SEC in its wholly. In this view, the regulator conceded on record that not all LBC token holders saw the cryptocurrency as an investment vehicle, Deaton said.
Following the SEC’s comment, LBRY founder Jeremy Kauffman asked the SEC to provide clarity for LBC secondary market transactions. However, the SEC refused to comply with the request. Instead, the regulator claims it is not its duty to provide clarity for crypto tokens.
In regarding the matter current matter on the ground, attorney John Deaton had requested a permanent injunction that does not distinguish between LBRY, its executive and users.