Ripple ally filed status report, stating that it cannot reach agreement with SEC regarding remedies
Startup for cryptocurrencies In a status report, LBRY (Ripple ally) claims that it has been unable to come to an understanding with the U.S. Securities and Exchange Commission (SEC) over the corrective measures the agency is requesting.
Ripple ally and SEC were unable to reach a resolution concerning remedies
LBRY has now asked for a briefing schedule for the court to conclude. According to James Filan, the attorney following the matter, the SEC wants the cryptocurrency start-up to acknowledge that every sale of LBC tokens, including secondary markets, constitutes security.
Early in 2021, the SEC filed a lawsuit against LBRY over the unregistered selling of LBC tokens. The cryptocurrency startup argued that since its tokens were not securities, it was not required to register with the organization. The SEC claimed that failing to inform the defendant that the tokens would be subject to security laws violated the start-right-ups to due process. This was the basis of its “fair notice” defense.
The blockchain-based file-sharing network LBRY was unsuccessful in its case against the SEC because the court found that it had sold its token as an unregistered security. Even though Ripple seems to be in a comparable situation, some XRP supporters were quick to dismiss any potential harm from the precedent-setting decision. According to lawyer John Deaton, the decision did not signal Ripple’s immediate demise.
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