In a noteworthy turn of events within the crypto realm, John Deaton, a distinguished figure known for staunchly advocating for XRP investors in the Ripple-SEC legal battle, has recently extended his involvement to the LBRY case. Acting as the legal representative for a substantial contingent of XRP token holders, Deaton officially lodged his Notice of Appearance on September 14, 2023, championing the cause of Amicus Curiae Naomi Brockwell.
Deaton firmly restated his unwavering commitment and expressed it on X (formerly known as Twitter). He cited, “Win, lose or draw, we will be in the fight!”.
Naomi Brockwell, the founder of Crypto Law, a platform dedicated to providing crucial insights and updates on legal and regulatory aspects of cryptocurrencies in the United States, has teamed up with Deaton. The LBRY lawsuit, initiated by the U.S. Securities and Exchange Commission (SEC) in March 2021, alleged that LBRY unlawfully sold LBC tokens without proper registration, violating federal law.
LBRY recently filed a notice of appeal on September 7, 2023, challenging the final judgment entered on July 11. This judgment directed LBRY to pay a civil penalty and prohibited the company from engaging in future unregistered crypto asset securities offerings.
In July 2023, the United States District Court for the District of New Hampshire delivered its final verdict in the SEC vs. LBRY case. The judgment held LBRY accountable for violating Section 5 of the Securities Act 1933.
LBRY case outcome had been closely watched for its potential implications on the XRP lawsuit. However, on July 14, 2023, U.S. District Judge Analisa Torres issued a summary judgment favoring Ripple. The ruling clarified that the sale of XRP tokens to retail buyers did not fall under the purview of securities.
Deaton’s involvement in the LBRY case signals a broader advocacy for fair and clear regulatory frameworks in cryptocurrency. His proactive stance in legal proceedings and crypto regulation discussions significantly impacts the industry.
The convergence of these legal battles underscores the evolving landscape of cryptocurrency regulations and the pivotal role played by advocates like Deaton and platforms like Crypto Law. As the cases unfold, the crypto community eagerly awaits the potential precedents that may emerge from these landmark legal battles.
