XRP fate hangs in balance after SEC vs LBRY judge fails to rule on LBC token status

• The final ruling in the SEC vs LBRY case is in. 
• Presiding Judge Barbadoro refused to clarify whether LBC token is a security. 
• The Judge exercised judicial restraint, differing from January’s hearing where Deaton had persuaded the judge that secondary market sales did not involve securities.
• XRP holders await Judge Analisa Torres' ruling in the SEC vs Ripple lawsuit amidst the conservative outcome in the SEC vs LBRY case.

Paul Barbadoro, the presiding Judge in the SEC vs LBRY case, took a completely different stance on the status of LBC token being or not a security than the one he had taken in the January ruling. Back then, it had been clarified that the judge’s order does not apply to secondary market sales of the LBC token. In the final ruling on July 11, Judge Barbadoro decided to exercise judicial restraint and refused to comment on the status of the LBC token as a security or non-security in secondary market transactions.

The SEC vs Ripple lawsuit has a similar situation where XRP holders are awaiting the judge’s clarification on secondary market sales of the token. XRP token’s fate therefore hangs in the balance until Judge Analisa Torres releases the verdict.

Also read: Pro XRP attorney John Deaton claims there is nothing strange in the delay of SEC vs. Ripple lawsuit outcome

SEC vs LBRY ruling is out, XRP holders are disappointed 

The community of XRP holders have closely watched the SEC vs LBRY case for two reasons. Pro XRP attorney John Deaton’s involvement as amicus in both cases generated interest and hope in the Ripple community, awaiting a ruling on the status of the LBC token, as a “non-security.”

The second key reason is XRP holders expect Judge Analisa Torres to comment on the status of secondary market sales of the altcoin and rule whether XRP is a security in these transactions. This directly affects XRP holders as they have engaged in purchase/ sell of the altcoin on cryptocurrency exchange platforms. 

FXStreet has covered the SEC vs LBRY case in detail here.

What’s next for the XRP community

Attorney John Deaton, an amicus curiae or friend of the court in both the SEC vs LBRY and SEC vs Ripple lawsuits, claims that the development is troubling and shared his thoughts in a recent tweet:

Deaton has assured XRP holders that in the final ruling by Judge Torres he will ask the judge for clarification on the secondary market sales of the altcoin XRP. However, the recent verdict in SEC vs LBRY has made it more likely that Judge Torres could refuses to rule on the status of XRP as a security, citing it as an issue that was not litigated.

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