Ripple Executive and XRP Community Support SEC Commissioner’s LBRY Lawsuit Dissent
A top executive at Ripple Labs, Stuart Alderoty, and members of the XRP community are rallying behind United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce’s dissenting opinion on the LBRY lawsuit. This show of support was expressed on social media platform X (formerly Twitter) by Alderoty and echoed by the XRP community.
Ripple Executive’s Appreciation for Commissioner Peirce
Stuart Alderoty, the chief legal officer of Ripple Labs, took to social media to express his gratitude to Commissioner Peirce for speaking out against perceived “injustice” in the ongoing LBRY lawsuit. Alderoty suggested that in cases where consumers are left waiting for resolution on fraud cases, it may be necessary to deviate from standard protocols and raise concerns more vocally and promptly. He even proposed the idea of submitting an amicus brief to address the issue.
SEC Commissioner Peirce’s Dissenting Statement
Commissioner Peirce issued a dissenting statement on October 27th regarding the LBRY lawsuit. In her statement, she emphasized that the SEC has been initiating numerous enforcement actions against cryptocurrency exchanges such as Ripple, LBRY, Kraken, Binance, and Coinbase. Although she revealed her disconcertment with the LBRY lawsuit, Commissioner Peirce refrained from discussing it further due to the ongoing litigation.
LBRY Lawsuit Background
In July, LBRY, a blockchain-based file-sharing and payment network, was found to have violated Section 5 of the Securities Act of 1933. As a result, LBRY was permanently barred from participating directly or indirectly in unregistered cryptocurrency securities offerings related to its native token.
Initially, LBRY attempted to appeal the judgment by the SEC but eventually abandoned the effort. Throughout the legal process, the XRP community supported LBRY, including during the appeal. However, with the litigation ending in the SEC’s favor, LBRY made the difficult decision to shut down. Financial burdens and regulatory pressure were cited as the primary reasons for the platform’s closure.
Pro-XRP Lawyer’s Response
John Deaton, a lawyer supportive of XRP, responded to Commissioner Peirce’s statement by suggesting that it may be time to submit an amicus brief. Deaton believes that just as 75,000 individual XRP holders expressed their views in court, it is important for someone with insider knowledge to speak out in a legal setting. Deaton has been vocal about his disapproval of the SEC’s actions against Ripple, which he believes have caused significant financial distress.
The support shown by Ripple’s chief legal officer and the XRP community for SEC Commissioner Peirce’s dissenting opinion on the LBRY lawsuit illustrates the ongoing debate and concerns surrounding regulatory actions within the cryptocurrency industry. As the industry continues to evolve, it is crucial for stakeholders to engage in open dialogue and advocate for fair and transparent regulations that promote innovation while safeguarding investors and consumers.