Ripple's Legal Executive and XRP Community Rally Behind SEC Commissioner Hester Peirce
Ripple Labs' legal head and XRP supporters rally behind SEC Commissioner Peirce's critique of the LBRY lawsuit.
Sun, 29 Oct 2023, 11:07 am UTC
Stuart Alderoty, Ripple Labs' chief legal officer, has joined forces with the XRP community to express their support for Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission (SEC), on the platform now known as X (formerly Twitter). This support centers around Peirce's opposition to what she perceives as "unfair practices" in the lawsuit involving LBRY.
Alderoty expressed his gratitude to Peirce and hinted that when perceived injustices occur, especially in cases not associated with fraudulent activities and where consumers have yet to receive justice for such activities, the usual protocol may need to be set aside. He believes in adopting a more immediate and vocal approach, potentially even presenting an amicus brief to address such issues.
On October 27, Peirce released a statement in which she expressed her disagreement with her fellow commissioners regarding the LBRY lawsuit. She noted that the SEC has recently taken action against various cryptocurrency platforms, including Kraken, Binance, Ripple, LBRY, and Coinbase. She also voiced reservations about the LBRY case but refrained from delving deeper due to ongoing legal proceedings.
Earlier this year, the blockchain-focused platform LBRY, known for file-sharing and payments, was found to have violated Section 5 of the Securities Act of 1933. As a result, the platform faced a ban on participating in any unregistered cryptocurrency securities transactions using its token. LBRY initially contested the SEC's decision but later withdrew their challenge. The closure of LBRY was attributed to financial challenges and regulatory pressure. Throughout these legal challenges, the XRP community continued to support LBRY, even during their appeal.
In response to Peirce's statement, John Deaton, an attorney sympathetic to the XRP's cause, mentioned the possibility of presenting an amicus brief. Deaton believes that when a significant number of individual stakeholders voice their opinions in court, it becomes crucial for those with deep insights to take a stand in a legal setting. He has previously expressed his dissatisfaction with the SEC's handling of the situation, holding it responsible for the financial difficulties faced by various entities.
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