Stuart Alderoty, the Chief Legal Officer of Ripple Labs, and members of the XRP community have shown their support for United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce’s recent stance against perceived injustices in the LBRY lawsuit.
This support was expressed on the social media platform formerly known as Twitter.
Alderoty conveyed his gratitude to Commissioner Peirce for her outspoken views and suggested that when injustices persist in non-fraud cases, especially when consumers are still awaiting resolutions for fraud cases, it may be necessary to deviate from standard protocols and raise concerns more prominently and promptly.
He even proposed the idea of submitting an amicus brief to address such issues.
Commissioner Peirce issued a dissenting statement regarding the LBRY lawsuit on October 27th.
She emphasized that the SEC had recently initiated numerous enforcement actions against various cryptocurrency exchanges, including Ripple, LBRY, Kraken, Binance, and Coinbase.
Peirce pointed out that the LBRY lawsuit was particularly troubling to her, but she refrained from discussing it further due to the ongoing litigation.
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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 prohibited from engaging in unregistered cryptocurrency securities offerings involving its native token, both directly and indirectly.
LBRY initially sought to appeal the judgment by the SEC, with strong support from the XRP community.
However, as the legal battle concluded in favor of the SEC, LBRY made the difficult decision to shut down. The company cited financial burdens and regulatory pressure as the primary reasons for its closure.
Pro-XRP lawyer John Deaton, in response to Commissioner Peirce’s statement, suggested that it might be the right time to submit an amicus brief.
Deaton believes that, just as 75,000 individual holders expressed their views in court during the legal proceedings, it is equally important for someone with insider knowledge to speak out in a court of law.
Deaton had previously expressed his disapproval of the SEC’s actions against the company, attributing them to causing financial distress.
The support from Ripple Labs, the XRP community, and legal experts like Deaton highlights the growing concern over regulatory actions in the cryptocurrency space and the need for a fair and transparent legal process.
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