Stuart Alderoty, the chief legal officer of Ripple Labs, as well as members of the XRP (XRP) community, have expressed their support on X (formerly Twitter) for United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce\u2019s stance against perceived \u201cinjustice\u201d in the LBRY lawsuit.<\/p>\n
Alderoty thanked\u00a0Peirce and suggested that when ongoing injustices occur in non-fraud cases, especially when consumers are still awaiting resolution for fraud cases, it might be necessary to disregard standard protocols and raise concerns more vocally and promptly, potentially even by submitting an amicus brief to address the issue.<\/p>\n
The SEC commissioner issued a dissenting statement regarding the LBRY lawsuit\u00a0on Oct. 27. Peirce emphasized that the commission has recently initiated numerous enforcement actions against cryptocurrency exchanges, such as Ripple, LBRY, Kraken, Binance and Coinbase.<\/p>\n
Peirce noted that the LBRY lawsuit was particularly disconcerting to her but stated she couldn\u2019t discuss it due to ongoing litigation.<\/p>\n
In July, blockchain-based file-sharing and payment network LBRY was determined to have violated Section 5 of the Securities Act 1933. Consequently, LBRY was permanently barred from engaging directly or indirectly in unregistered cryptocurrency securities offerings involving its native token.<\/p>\n
The crypto platform initially sought to appeal a judgment by the U.S. SEC but later abandoned the effort. The XRP community supported the platform during the legal process, including the appeal. However, with the litigation concluding in the SEC\u2019s favor, LBRY decided to close down, citing financial burdens and regulatory pressure as the reasons for its shutdown.<\/p>\n