LBRY’s native token LBC is in the midst of a parabolic run following new developments related to its battle with the US Securities and Exchange Commission (SEC).
The file-sharing and payment protocol lost a court case with the SEC in November last year after a federal judge ruled it violated securities laws when it sold LBC.
LBRY’s battle with the SEC has caught the attention of Ripple and XRP supporters, as its own community continues to face a similar battle with the regulator, which accused Ripple Labs of issuing XRP as an unregistered security in late 2020. .
After winning the lawsuit, the SEC hoped to get clarity from the judge that LBC qualified as an unregistered security during both the direct sale of the LBRY token and the secondary sales. However, the judge reportedly ruled that his ruling against LBRY does not apply to sales on the secondary market, implying that LBC is not a security.
John Deaton, who represented XRP holders in the Ripple lawsuit as amicus and also spoke in court on behalf of LBRY, said in a recent video update that the judge clearly stated that his ruling did not apply to sales on the secondary market.
“Then he looked at me and said, ‘Amicus… I’m going to make it clear that my order does not apply to sales on the secondary market.’ He says, ‘so that should satisfy you, right?’
I stood up and said, ‘Great… Could you consider some language on how the token itself is not a security?’ And he smiled and said, ‘Well, I’m a minimalist.’ And he left it open there, but when you think about it, if he says secondary market sales aren’t at stake, then the token itself can’t be a security. If the token itself is a security, that means that whenever it is sold it will be a security.”
At the time of writing, LBC is up over 140% in the past three days, and at one point is up over 219% as it shot up from a low of $0.0103 to $0.0329. It currently has a market cap of just $17.8 million and is still 98% below its all-time highs, despite the rally.
Crypto expert Jeremy Hogan, known for following Ripple’s lawsuit, asked what the LBC ruling and its subsequent price increase meant for XRP, given that Ripple is a much bigger and more profitable company.
“Below is the weekly chart for LBC (up 100%) and LBRY completely lost the SEC lawsuit and will file for bankruptcy.
What does this mean against XRP?
Asking for a friend. :)”
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Featured image: Shutterstock/korrakot sitivash
