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This is How Ripple vs SEC Varies From SEC vs LBRY, & Why XRPArmy can be Rest Assured

8 Nov, 20222 min readRegulation
This is How Ripple vs SEC Varies From SEC vs LBRY, & Why XRPArmy can be Rest Assured

The Ripple vs SEC lawsuit has been engrossed in recent times as every new update has been creating a huge impact on the market sentiments as well as the XRP price. As the time for Summary Judgement is approaching fast, the XRPArmy appears to be pretty confident of the lawsuit turning in favour of the company.

Meanwhile, the XRP holders continue to agonize as the recent developments are turning in favour of the SEC.

Initially, the speculation about winning the Howey test made huge rounds. The market experts cleared the rumours of the SEC winning the Summary judgement on the basis of clearing the Howey test. However, the army has now turned more furious as a decentralised content platform just failed to prove itself against SEC with similar charges.

LBRY, a protocol that enables anyone to build apps and interact with the digital content present on the network, has lost a lawsuit against the SEC. The Federal judge ruled out the verdict the LBRY sold tokens as securities, much similar to the ongoing Ripple vs SEC lawsuit.

Ripple vs SEC is Different from SEC vs LBRY

Attorney John E Deaton in a series of Tweets explains why both cases can’t be compared, while the impact of the win may be witnessed in the court.

It is one district judge’s interpretation of the law as applied to one specific case. @LBRYcom’s lawyers did not contest Howey’s 2nd Prong requiring a common enterprise. They did not ask the judge to distinguish between secondary market sales and direct sales by LBRY.— John E Deaton (220K Followers Beware Imposters) (@JohnEDeaton1) November 7, 2022

John E.Deaton said that the LBRY’s lawyers did not challenge Howey’s 2nd Prong test which required a common enterprise. Meanwhile, in Ripple’s case, the common enterprise was challenged. Further, the expert witness for SEC argued the common enterprise is the entire Ripple ecosystem including exchanges, vendors, merchants & retail holders, etc.

However, the XRPArmy submitted more than 3000 affidavits to prove them wrong due to which the expert witness was abandoned by the SEC. John Deaton concludes by saying the SEC may make a big deal about its victory against LBRY in the Ripple case as well.

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