In a significant development, John Deaton, a prominent attorney representing XRP token holders in their legal dispute with the SEC, has recently filed a notice to serve as Amicus Curiae in the LBRY court case. This move comes as LBRY appeals against the final judgment issued against them earlier this year. With the aim of providing information and expertise to aid the court’s decision-making process, an Amicus Curiae intervenes in a lawsuit without being directly involved.
Back in March 2021, LBRY faced a lawsuit from the SEC, alleging illegally selling their native LBC tokens without registering with the agency. In November 2022, the SEC added further charges, accusing LBRY of violating securities laws by selling the LBC tokens without a license. Consequently, LBRY was ordered by the New Hampshire District Court to pay a hefty penalty of $22 million. However, LBRY disputed this decision, arguing that it failed to account for legitimate software development and hosting expenses. Unfortunately, LBRY’s appeal was unsuccessful, leading to their announcement of gradually winding down operations.
A Glimmer of Hope for LBRY’s Appeal
Despite the legal setbacks, recent victories by Ripple and Grayscale against the SEC have injected optimism into LBRY’s appeal process. On July 14, 2023, the U.S. District Judge Analisa Torres ruled in favor of Ripple Labs, stating that the sale of XRP tokens to retail buyers did not meet the definition of securities. This ruling has significant potential implications for LBRY’s case since it involves similar SEC allegations regarding the sale of XRP tokens amounting to $1.3 billion. LBRY’s appeal to the United States Court of Appeals for the First Circuit provides a glimmer of hope for a favorable outcome.
The Role of John Deaton in the Legal Battle
John Deaton, known for his dedication to cryptocurrency investors’ interests and his active involvement in legal battles surrounding cryptocurrency regulations, has now joined the fight against the SEC’s decision in the LBRY case. Deaton submitted a notice of appearance representing Amicus Curiae Naomi Brockwell, the founder of Crypto Law. As co-founders of Crypto Law, both Deaton and Brockwell are focused on providing insights and updates related to legal and regulatory aspects of cryptocurrencies in the United States.
Expressing his dedication to the cause, Deaton took to social media (formerly Twitter) and affirmed his commitment by stating, “Win, lose, or draw, we will be in the fight!” This declaration highlights Deaton’s determination to support XRP token holders and LBRY in their ongoing legal battles.
The ongoing legal battle between LBRY and the SEC has gained further attention with John Deaton’s entry as Amicus Curiae. As LBRY appeals against the final judgment and fights against the penalties imposed upon them, Deaton’s expertise and dedication bring hope for a positive outcome. Additionally, recent legal victories by Ripple and Grayscale against the SEC have created an optimistic environment for LBRY’s appeal.
As the fight against the SEC’s decisions in cryptocurrency-related cases intensifies, the involvement of legal experts like John Deaton reflects the growing need for proper regulation and clarity in the industry. With significant implications for the future of LBRY and the broader cryptocurrency industry, the outcome of this case will shape the regulatory landscape and provide insights into the legality of token offerings and sales.