Lawyer John Deaton achieved a significant victory for LBRY (LBC) tokens holders and the whole crypto community.
Attorney Deaton achieved a significant victory for LBC token holders and the whole crypto industry in the recently concluded hearing between LBRY and the SEC held yesterday at the Warren B. Rudman United States Courthouse in New Hampshire.
Deaton, who represented tech journalist Naomi Brockwell as an amicus counsel, successfully persuaded the judge that LBC secondary market transactions are not securities. Remember that the SEC requested an injunction that does not distinguish between LBRY, the company’s officials, and users to avoid clarifying LBC.
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Deaton Sought For Clarity
On behalf of Brockwell and other LBRY users, Attorney Deaton sought clarity for LBC secondary market transactions because he found the injunction vague and broad.
The owner of Crypto Law claimed to have cited an article by commercial contract attorney Lewis Cohen that examined all security cases in the United States since Howey. No court acknowledged that the underlying asset was a security at any point during Cohen’s examination of security cases in the United States, according to Deaton.
Explaining his remarks to the Judge in the courtroom, Deaton noted:
“The article says that your decision reads like you could be saying that LBC is security in itself. Judge, if you don’t mean that, then we need to clarify [it].”
Deaton stated that after considerable back-and-forth, the Judge underlined that he is not inclined to issue an injunction. Furthermore, he noted that the judge’s comment represents a significant victory since the court won’t issue an order against LBRY users.
Intriguingly, Deaton acknowledged that he succeeded in getting the Securities and Exchange Commission to concede on record that LBC’s secondary market transactions do not qualify as securities.
Read article: Attorney Deaton Criticizes SEC’s “Schizophrenic Argument” in Ripple Case
Crypto Community Salutes Deaton
Cryptocurrency proponents praised Deaton for his efforts in the LBRY case, which might also be useful in other cases involving cryptocurrency, like Ripple vs. SEC case.
In a tweet today, Jeremy Hogan, a partner with Hogan & Hogan, offered his praise for Deaton’s efforts to have the SEC publicly acknowledge LBC as a token.
Nobody fights harder for the cryptocurrency industry like the founder of Crypto Law, according to Fox Business Journalist Eleanor Terrett, who also praised Deaton.
A message from LBRY:
