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Eleanor Terrett, Fox Business correspondent, has stated that if a judge rules that LBC secondary market transactions by unaffiliated persons with or without the intention of investing in LBRY are legal, it could set a lucrative precedent for XRP users.
After this update, it seems the scale has shifted in favor of Ripple in the Ripple vs XRP lawsuit. There have been new updates on this lawsuit and things are not looking good for the SEC.
Does Ripple have an advantage over SEC?
Attorney John Deaton stated that attorneys and US SEC staff had discussed tokens as securities. Whereas Bitcoin (BTC) was previously packaged, marketed, offered, and sold as investment contracts.
This, however, is referred to as Security. It is very important to remember that just because someone uses BTC as security does not mean that Bitcoin itself has become a security. According to the lawyers, the logic remains the same in the XRP lawsuit.
The main difference between security and utility tokens is the purpose for which they are issued. If a coin is issued primarily to raise funds for something, it is a security token. And it makes no difference whether tokens can be used to pay for goods and services on the platform.
Do Judges Tend to Order Ripple?
If the Judge believes the tokens themselves are securities, that statement will cover any subsequent token sale, according to the attorneys. However, Judge stated that his decision does not apply to the next sale of LBC tokens.
This turns out to be the most important reason why Court clarification is so needed by crypto holders. However, direct sales of tokens by promoters may still generate commissions. Meanwhile, in the case of an investment contract, the underlying asset is never collateral.
Recent developments, according to Amicus Curiae in the XRP lawsuit, give him confidence that the Judge will reject the SEC’s Summary Judgment motion.
The Final Decision Is Near
For a long time, it seemed like Ripple had the upper hand in this lawsuit. This case is now in its final stages and the outcome will be very important for the entire crypto community. Ripple is working to ensure that, on a certain date, or at least in the future, no sales of XRP will be considered securities.
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