The impending hearing between LBRY, an open-source content distribution company, and the SEC is “incredibly important for all crypto,” according to renowned XRP Pro attorney John Deaton.
The hearing is slated to start at 3 PM on January 30 at the Warren B. Rudman United State Courthouse in New Hampshire. Deaton reaffirmed in a tweet today that he submitted an amicus curiae brief and an appearance on Naomi Brockwell’s behalf for the upcoming hearing.
It’s important to note that the Investors Choice Advocates Network also submitted an amici curiae brief in favor of LBRY in the legal proceeding. LBRY and the amici, according to attorney Deaton, are asking the judge to specify that the company’s native token, LBC, is not a security.
Additionally, LBRY and Amici want the judge to rule that secondary market transactions are not covered by the November ruling that favored the SEC.
Deaton believes that the upcoming hearing will be crucial for the whole cryptocurrency industry because, in the event that the SEC prevails, it might mean that all secondary market transactions involving coins and tokens are prohibited in the United States.
Deaton Stated No Sensible Cryptocurrency Regulation Is Coming
Deaton’s remarks occurred days after the founder of Crypto Law’s statement that he does not anticipate any “sensible” cryptocurrency regulations passing any time soon. The earliest the company would see rational rules would be in the first half of 2025, he said in the Twitter discussion.
According to Deaton, the industry will only receive guidance through the SEC’s regulation by enforcement policy if the LBRY and Ripple lawsuits’ legal outcomes are considered.
“In other words, guidance will come by Federal District Court decisions like LBRY, Ripple, Dragonchain, etc.,” he noted.
Notably, the summary judgment ruling of the lawsuit favored the SEC in its entirety. Deaton noted that the regulator publicly acknowledged that not all LBC token owners viewed the cryptocurrency asset as a means of investment.
After the SEC made its remark, LBRY founder Jeremy Kauffman requested that the SEC clarify its position on LBC secondary market transactions. Nevertheless, the SEC refused to comply with the request. As opposed to that, the regulator argues that it is not their responsibility to make clarifications for crypto tokens.
To avoid further clarification, Deaton claimed that the SEC requested a permanent injunction that does not make a distinction between LBRY, its executives, and users.