HomeAltcoinSmall-Cap Crypto Assets Rise 219% After Controversial SEC Decision: Could XRP Do...

Small-Cap Crypto Assets Rise 219% After Controversial SEC Decision: Could XRP Do The Same?


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. :)”

Font: Jeremy Hogan/Twitter

Don’t miss a thing: sign up to receive crypto email alerts straight to your inbox

Check Price Action

follow us TwitterFacebook and Telegram

Surf The Daily Hodl Mix

Check the latest news headlines


Disclaimer: The opinions expressed in The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investment in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are at your own risk, and any loss you may incur is your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, and The Daily Hodl is not an investment adviser. Please note that The Daily Hodl is involved in affiliate marketing.

Featured image: Shutterstock/korrakot sitivash


Heath Tarbert joins Circle as General Counsel and Director of Corporate Affairs

In an exciting development for the global fintech industry, Circle Internet Financial has appointed Heath Tarbert as its new Chief Legal Officer and Head of...

Here is the bullish case for Ethereum Rival Solana (SOL), according to InvestAnswers

A widely followed analyst is giving a bullish outlook on the blockchain development of Ethereum (ETH) competitor Solana (SOL). In a new interview with Paul Barron,...

Rich Dad Poor Dad Author Says Biggest Real Estate Crash in History Is Coming, Calls BTC and Precious Metals the Answer

Rich Dad Poor Dad author Robert Kiyosaki once again predicts that the real estate sector will collapse and cause a severe global financial crisis. Former best-selling...

Binance Pay and Credencial Payments join forces to enable real-time crypto payments in Latin America

In a strategic alliance that aims to revolutionize the digital payments landscape, Binance Pay, the digital payments platform of the world's largest cryptocurrency exchange, Binance,...

Most Popular