The U.S. Securities and Exchange Commission won another victory over a crypto project this week. The outcome has raised concerns over its battle with Ripple, but things may not be that bad.
Earlier this week, the SEC notched up another enforcement win over a digital asset project. It accused LBRY of selling unregistered securities on its decentralized video publishing platform and won the case.
The crypto community reacted with concern that this could set precedence for the rest of the industry. At the time, the LBRY team warned:
“The language used here sets an extraordinarily dangerous precedent that makes every cryptocurrency in the US a security, including Ethereum.”
Why Ripple Case Is Not The Same
On Nov. 9, CryptoLaw posted ten reasons why the SEC’s latest victory won’t affect Ripple.
CryptoLaw is a YouTube channel backed by John E. Deaton, who is fighting on behalf of more than 75,000 XRP investors.
Deaton said that the first reason was that the judge was following the SG case. This case from 2003 was brought against a company operating a “virtual stock exchange” that ended up being a Ponzi scheme. The Ripple judge is not following the SG case, he said.
Furthermore, the different cases the SEC has won have been in different circuits, which have different applicable laws. There are 12…
