In a recent court ruling that concluded the case between the Securities and Exchange Commission (SEC) and decentralized content sharing platform LBRY Inc., speculations have arisen regarding the potential implications for Ripple and its digital asset, XRP. The LBRY team announced the dissolution of LBRY Inc. in compliance with the court’s order, leaving the future of LBRY in the hands of the community. This development has raised concerns within the Ripple community, as they wonder if a similar outcome could affect their ongoing legal battle.

Prominent lawyer Jeremy Hogan, well-known for his involvement in the XRP community, shared his insights on the LBRY case and how it might relate to Ripple. Hogan noted that the court ruling in the LBRY case did not specifically address secondary sales or the Major Questions Doctrine. Instead, it focused on issuing penalties and enjoining further violations.

Hogan suggested that a comparable ruling in the Ripple case is plausible, but he outlined two essential conditions that must be met to issue injunctive relief against Ripple. Firstly, the court would need to find that the Fair Notice Defense is insufficient to warrant a trial on the matter. Secondly, the court would have to determine that both past and present sales of XRP qualify as investment contracts.

If these conditions were met, the injunctive relief could pose a significant challenge for Ripple, as it would restrict sales from escrow. However, Hogan mentioned that there might be potential workaround solutions, although they could interfere with Ripple’s business plans.

The recent ruling in the LBRY case has raised questions about its potential impact on the market and the fate of XRP. Hogan characterized the lack of a ruling on secondary market sales as a “status quo” decision. While doubts lingered about Coinbase relisting XRP based on this ruling, Hogan did not anticipate other exchanges delisting the digital asset.

Hogan expressed his disappointment with the judge’s deference to the SEC in the final paragraph and the judge’s failure to fully comprehend the confusion prevailing in the marketplace. He believes that the LBRY ruling provides little market guidance and ultimately hurt all parties involved, serving as another victory for the SEC.

Another prominent figure in the XRP community, Attorney John E Deaton, also shared his thoughts on the LBRY judgment. Deaton had requested the judge to clarify that the XRP token itself is not a security, akin to a previous ruling in the Telegram case. However, the judge refrained from making such a declaration, citing that the specific issue had not been litigated and expressing a commitment to judicial restraint.

Deaton expressed disappointment with the judge’s cautious approach, but he also acknowledged that the judge’s decision explicitly excluded the application of the injunction to secondary market offerings. This exclusion prevents the SEC from falsely claiming that the ruling applies to secondary sales as well. Deaton considered this a positive aspect, stating that the SEC cannot argue that the decision extends to the secondary market.

The final judgment in the LBRY case, as delivered by Judge Paul Barbadoro, permanently restrains and enjoins LBRY from violating Section 5 of the Securities Act. This includes selling securities without an effective registration statement and engaging in unregistered crypto asset securities offerings. LBRY Inc. is also required to pay a civil penalty of $111,614 to the SEC.

While the LBRY ruling has generated uncertainties and discussions within the Ripple and XRP community, it is important to note that the situation remains fluid, and future developments could influence the legal landscape for Ripple. It is advisable for interested parties to closely monitor updates from reliable sources and official channels dedicated to Ripple and XRP.

As the Ripple and XRP communities observe the potential consequences of the LBRY case, experts believe that it could serve as a precedent for Ripple’s legal battle. Nevertheless, the specific conditions outlined by legal experts must be met for any comparable outcome to arise. The future of Ripple and XRP awaits further legal proceedings and decisions that will shape the path ahead.