Bad News for Ripple? Status Statement on Secondary Crypto Sales

Ripple may be anxiously following the rulings of the US courts. This tension is heightened by Judge Paul Barbadoro, of the U.S. District Court for the District of New Hampshire, recently waiving a decision on whether secondary sales of LBRY Credits (LBC) are a security.

This ruling was made on July 11 in a case brought by the US Securities and Exchange Commission (SEC) against LBRY, a decentralized content platform.

The Potential Effect on the Case Against Ripple

Judge Barbadoro’s decision could potentially set an important legal precedent for the SEC’s case against Ripple. Fellow Judge Analisa Torres will rule on this case in the coming months. Barbadoro’s statement was clear. He said: “Accordingly, I do not take a position on whether the registration requirement applies to LBC’s secondary market offerings.”

The Role of the Secondary Market

In a secondary market, securities are traded between traders, while in a primary market, transactions take place directly between the traders and the company issuing the securities. In light of this, John Deaton, an attorney representing thousands of XRP token holders, sought clarification from Barbadoro on whether LBC constitutes a security. According to Deaton, the judge has decided to maintain his “judicial restraint”.

Judge Barbadoro’s Changing Perspective

Judge Paul Barbadoro’s recent ruling represents a marked U-turn from his previous stance. At an appeals hearing in January, he had concluded that secondary sale of LBRY Credits (LBC) was not a securities offering.

Clarity About LBC as Effect

In that same appeal hearing, the New Hampshire judge made it clear that LBC is only considered a security if the sale is made outright. The U.S. Securities and Exchange Commission (SEC) also confirmed that LBC’s secondary market sales are not a security.

Read Also:  Automating Reporting And Analytics Processes

Future Prospects For Ripple

Jeremy Hogan, a US-based lawyer and Ripple supporter, recently indicated that he expects Judge Analisa Torres to rule in the SEC’s lawsuit against Ripple within months. He predicts: “We will see the bigger picture sometime in the next two months, and unless Ripple wins outright, we will know the details by the end of the year. If the details are negative, we can expect lengthy appeals.”

Conclusion

Judges Barbadoro and Torres’ decisions could affect the future of Ripple and the crypto world. These rulings may change the way we define and trade securities in the crypto market. The outcome may set a legal precedent that shapes the future of the crypto industry

Free 20 euros worth of Crypto

Do you want to enter the crypto world and perhaps buy XRP? Then we have great news for you! Thanks to a special deal between Newsbit and Bitvavo, one of the most accessible and user-friendly crypto exchanges in Europe, our readers are getting an exclusive offer.

If you sign up to Bitvavo via the button below, you will not only receive 20 euros for free, but you will also not pay any trading fees on your first 10,000 euros in transactions.

Recent Articles

Related News

Leave A Reply

Please enter your comment!
Please enter your name here