John Deaton, a prominent attorney known for his involvement in the Ripple vs. SEC legal case, has stepped into the legal arena once again, this time filing a Notice of Appearance in the LBRY Inc. appeal case. This development comes on the heels of LBRY Inc.’s decision to appeal a U.S. District Court ruling that deemed their native cryptocurrency, LBRY Credits (LBC), an unregistered security.
LBRY Inc., a decentralized content distribution network, found itself in a legal showdown with the U.S. Securities and Exchange Commission (SEC) over the classification of its native token. The District Court ruled in favor of the SEC, asserting that LBC indeed met the criteria of an unregistered security. This determination was based on the token’s investment characteristics outweighing its utility, aligning with “objective economic realities.”
In response to this unfavorable ruling, LBRY expressed its determination to continue the fight. Notably, the SEC has recently moved to lessen the company’s financial penalties, citing their constrained financial situation.
LBRY has filed a Notice of Appeal against the SEC. pic.twitter.com/Zp9S0TP0Qw
— LBRY 🚀 (@LBRYcom) September 7, 2023
John Deaton Steps Into LBRY’s Case
John Deaton’s involvement in the LBRY appeal has sparked substantial interest, particularly among Ripple supporters closely monitoring the SEC’s legal actions against blockchain firms.
However, what makes John Deaton’s involvement in the LBRY appeal particularly interesting is its potential implications. Ripple supporters, who have been closely monitoring the SEC’s legal actions against blockchain companies, are now keenly observing this case.
The decision’s outcome might have significant impacts on the cryptocurrency market and reveal the SEC’s true power over token sales and other digital assets.
In the midst of this legal battle, John Deaton remains resolute in his commitment to the fight for fairness and clarity within the cryptocurrency space. In his own words, he responded to James K. Filan, another defense attorney, by saying, “Win, lose, or draw, we will be in the fight!”
Win, lose or draw, we will be in the fight! https://t.co/y5vidloho1
— John E Deaton (@JohnEDeaton1) September 14, 2023
Notably, Deaton’s appearance on behalf of Amicus Curiae Naomi Brockwell is significant. Naomi Brockwell is the founder of Crypto Law, a platform dedicated to providing news and analysis on crypto-related U.S. legal and regulatory developments, in collaboration with Deaton.
The LBRY case’s outcome was initially perceived as potentially impacting the ongoing XRP lawsuit. However, on July 14, 2023, U.S. District Judge Analisa Torres issued a summary judgment in favor of Ripple, deeming the XRP token sale to retail buyers as non-securities.
As Deaton continues his legal endeavors, the cryptocurrency community watches closely, recognizing his role in shaping the industry’s legal landscape.
