Stuart Alderoty, the Chief Legal Officer of Ripple Labs, along with members of the XRP community, have voiced their support for United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce’s dissenting opinion regarding perceived injustices in the LBRY lawsuit.
Expressing Gratitude and Urging Action
Alderoty extended his thanks to Commissioner Peirce and suggested that in cases of ongoing injustices, especially when consumers are still awaiting resolutions in fraud cases, it might be necessary to bypass standard protocols and raise concerns more vocally and promptly. He even proposed the idea of submitting an amicus brief to address the issue.
Thank you Commissioner. When you see injustices like this continue in non-fraud cases (while consumers wait for recourse from actual frauds) perhaps it’s time to let ordinary rules of protocol go by the wayside and speak out louder and sooner? Perhaps even with an amicus brief?
— Stuart Alderoty (@s_alderoty) October 27, 2023
Commissioner Peirce issued her dissenting statement on October 27, expressing concerns about the LBRY lawsuit. She emphasized that the SEC has recently initiated multiple enforcement actions against cryptocurrency exchanges, including Ripple, LBRY, Kraken, Binance, and Coinbase. While she found the LBRY lawsuit particularly disconcerting, she refrained from discussing it further due to ongoing litigation.
LBRY’s Legal Battle
In July, LRYB, a blockchain-based file-sharing and payment network, was found to have violated Section 5 of the Securities Act of 1933. This led to LBRY being permanently prohibited from participating in unregistered cryptocurrency securities offerings involving its native token. During the legal process, the XRP community rallied behind LBRY, including supporting its appeal. However, following the litigation concluding in the SEC’s favor, LBRY decided to cease its operations, citing financial burdens and regulatory pressure.
Advocating for an Amicus Brief
John Deaton, a pro-XRP lawyer, responded to Commissioner Peirce’s statement by suggesting that it might be the right time to submit an amicus brief. Deaton believes that just as 75,000 individual holders expressed their views in court, it is equally important for someone with insider knowledge to present their perspective in a court of law. Deaton had previously voiced his disapproval of the SEC’s actions against LBRY, citing its adverse financial consequences.
This collective support from Ripple’s Chief Legal Officer and the XRP community highlights the ongoing debate and challenges surrounding regulatory actions in the cryptocurrency space and the broader implications of such decisions.