Ripple’s Chief Legal Officer, Stuart Alderoty, and the XRP community, have recently thrown their support behind SEC Commissioner Hester Peirce in her dissenting stance against what they perceive as “injustice” in the LBRY lawsuit. This move underscores the mounting concerns over regulatory actions and their implications for the cryptocurrency industry.
Alderoty expressed his gratitude to Commissioner Peirce for her vocal dissent and suggested that in cases of perceived injustices in non-fraud cases, it may be necessary to deviate from standard protocols. He even proposed the submission of an amicus brief, a legal document filed by non-parties in a case to provide information or insights, as a potential avenue for addressing these concerns more promptly.
Commissioner Peirce’s dissenting statement, issued on October 27, highlighted the SEC’s increasing number of enforcement actions against cryptocurrency exchanges, including Ripple, LBRY, Kraken, Binance, and Coinbase. She expressed particular unease with the LBRY lawsuit but was constrained in discussing it further due to ongoing litigation.
In July, LBRY, a blockchain-based file-sharing and payment network, was found to have violated Section 5 of the Securities Act of 1933, leading to its permanent ban from engaging in unregistered cryptocurrency securities offerings involving its native token. Despite initial attempts to appeal the SEC’s judgment, LBRY eventually succumbed to the regulatory pressure, leading to its closure.
Notably, the XRP community had rallied behind LBRY during its legal battle, but with the SEC’s victory, the platform’s decision to shut down was driven by financial constraints and mounting regulatory pressures.
Ripple and XRP Community Multiply Against SEC’s Lawsuits
Pro-XRP lawyer John Deaton echoed Alderoty’s sentiment and suggested that it might be time to submit an amicus brief to express insider knowledge and concerns in a court of law. Deaton, who had previously voiced his dissatisfaction with the SEC’s actions against Ripple, emphasized the importance of a collective response to regulatory actions that have severe implications for the cryptocurrency industry.
In conclusion, the ripple effect of regulatory actions in the cryptocurrency space continues to resonate, prompting stakeholders like Stuart Alderoty, Commissioner Peirce, and John Deaton to question the fairness and consequences of such actions, and explore new avenues for addressing perceived injustices in the evolving legal landscape of digital assets.