Attorney John Deaton, famous for giving the cryptocurrency community insights on the SEC vs Ripple lawsuit from a legal perspective, has again broken down the possible implications of the U.S. Securities and Exchange Commission (SEC) winning its case against the blockchain-based file-sharing and payment network LBRY.
Is Ripple on the same path as LBRY?
As many predict the downfall of Ripple and XRP, alluding that its fate will be similar to LBRY, Deaton clarifies that the sentiments are not backed by fact in any way. He explains that both parties have made great arguments in court so far.
“..But Ripple doesn’t have the BURDEN OF PROOF – the SEC does. The SEC did a decent job at replying to Ripple’s pre-1934 Blue Sky Laws argument.
The SEC also did a decent job attacking Ripple’s argument that there MUST be an underlying contract for an investment contract to exist.” he explains.
He also notes the differences between LBRY and XRP’s case with the SEC, shedding more light on how the turnout might differ vastly from LBRY’s case.
“The Ripple/XRP case is in the 2nd Circuit. LBRY isn’t. Plus, LBRY didn’t contest the common enterprise factor – Ripple AND XRPHolders, who were granted Amicus by the Judge more than one year before any other Amici joined, VIGOROUSLY contest the common enterprise prong of Howey.”
Although he proceeds to make clear that his predictions might not be entirely accurate, he remains mostly convinced that Ripple and XRP stand a chance of conquering the SEC.
The future of LBRY and LBRY Inc
While Hogan’s breakdown exposes a more positive turnout for Ripple, it seems unlikely that LBRY will make any major comeback after its defeat.
The official LBRY Twitter handle recently made a series of significant tweets summarising the company’s next phase and what onlookers should expect.
LBRY explains that it expects the SEC to leak any confidential document it has with any company, and as such, LBRY will likely “be dead in the future.”
Additionally, LRBY made clear that although its mission will still be in motion, the company (LBRY Inc) itself will not be able to withstand the debts it has been slapped with from the SEC and the legal system.
“It is specifically LBRY Inc that must die, the LBRY protocol and blockchain will continue.”