Eleanor Terrett, a correspondent for Fox Business, has stated that if the judge rules that LBC secondary market transactions by non-affiliates with or without intent to invest in LBRY are legal, it may set a favorable precedent for XRP users. .
After this update, it seems that the scales have tipped in favor of Ripple in the Ripple vs XRP lawsuit. There is a new update on this lawsuit and things are not looking good for the SEC.
Does Ripple have an advantage over the SEC?
Attorney John Deaton stated that US SEC lawyers and staff have been discussing tokens as securities. While Bitcoin (BTC) was previously packaged, traded, offered, and sold as an investment contract.
This, however, is known as Security. It is crucial to remember that just because someone has used BTC as a security does not mean that Bitcoin itself has become a security. According to the lawyer, the logic remains the same in the XRP lawsuit.
The main distinction between security and utility tokens is the purpose for which they are issued. If the coins were issued primarily to raise funds for something, they are security tokens. And it doesn’t matter if the tokens can be used to pay for goods and services on the platform.
Is the judge likely to rule in favor of Ripple?
If the judge believed that the token itself was a security, the statement would include subsequent sales of the token, according to the lawyer. However, the judge stated that his decision does not apply to any subsequent sale of LBC tokens.
This turns out to be the most important reason why cryptocurrency holders desperately needed clarification from the Court. However, direct sales of a token by a promoter may still generate a commission. Meanwhile, in an investment contract case, the underlying asset is never the security.
The recent development, according to Amicus Curiae in the XRP lawsuit, gives him confidence that the judge will deny the SEC’s motion for summary judgment.
final judgment is near
For a long time, it seems that Ripple has had the upper hand in this lawsuit. The case is now in its final stage and its outcome would be very crucial for the entire crypto community. Ripple is working to ensure that, as of a certain date, or at least in the future, none of the XRP sales are considered securities.
This post Ripple vs SEC Update: Latest Hearing Offers Hope, XRP Gains Edge
was published first on https://coinpedia.org/ripple/ripple-vs-sec-update-latest-hearing-offers-hope-xrp-gains-upper-hand/