The XRP community and Ripple Lab's Chief Legal Officer (CLO), Stuart Alderoty, expressed their support for SEC Commissioner Hester Peirce's condemnation of the LBRY lawsuit. Peirce, in a statement of dissent, voiced her concerns about the enforcement actions taken by the SEC against various crypto exchanges, including Ripple, LBRY, Kraken, Binance, and Coinbase.
Peirce emphasized that the LBRY lawsuit troubled her the most among the numerous enforcement actions brought by the SEC. However, she was unable to publicly address the issue while the litigation was ongoing. In July, LBRY, a blockchain-based file-sharing and payment network, was found guilty of violating the Securities Act of 1933. The platform was permanently restrained from participating in any unregistered crypto asset securities offering through its native token.
Following the SEC's victory in the litigation, LBRY decided to cease its operations due to mounting financial liabilities and pressure from the SEC. The company's assets will be placed in receivership to satisfy its debts, including the civil money penalty owed to the Commission. Peirce expressed her belief that the outcome was not in the interest of innovation or investors.
The XRP community showed significant support for LBRY throughout the legal proceedings, particularly when the platform initially decided to file an appeal. Ripple CLO Stuart Alderoty also expressed his support for LBRY and commended Commissioner Peirce for her outspoken criticism of the SEC's enforcement-driven approach to crypto. Both Alderoty and crypto enthusiast John E. Deaton, founder of CryptoLaw, believe that filing an amicus brief against the SEC in the future could have a positive impact.
In conclusion, the XRP community and Ripple CLO stand in solidarity with LBRY and applaud SEC Commissioner Hester Peirce for her condemnation of the LBRY lawsuit. They believe that the outcome of the litigation demonstrates the arbitrary nature and real-life consequences of the SEC's enforcement approach to the crypto industry. Moving forward, they hope to continue advocating for innovation and fair treatment of crypto companies.
