January 30 May Be Crypto’s Biggest Hearing Yet

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In recent updates, Ripple allies LBRY are requesting that the court hear oral argument to have their motion to limit SEC remedies granted, and the date has been set for January 30.

According to crypto attorney John Deaton, who himself filed an amicus brief in the LBRY lawsuit, the January 30 hearing regarding LBRY’s motion to limit SEC remedies is arguably the largest crypto audience to date.

The January 30 hearing regarding @LBRYcoms motion to limit SEC remedies is arguably the most significant crypto hearing to date.

The SEC is seeking restitution from a non-party, but has also read the SEC’s proposed wording for the permanent injunction. https://t.co/g6Bi0DdjYP pic.twitter.com/xpLsD1hI5x

John E Deaton (@JohnEDeaton1) December 28, 2022

He cites his reasons. A major problem, he said, is that the SEC is seeking a disgorgement against a non-party entity, which has huge implications and could set a very bad precedent.

Second, Deaton highlights the SEC’s proposed wording for the permanent injunction. He says this proposed wording could theoretically allow the SEC to access the secondary market and prohibit transactions from people who are only users of the platform and have never acquired LBC for investment reasons. .

Third, the SEC erroneously seeks punitive reimbursement in a non-fraud case. The LBRY lawsuit, like Ripple’s, is a non-fraudulent case, but a violation of Article 5, which was the failure to record LBC sales.

Deaton recalled that when the SEC won in the KIK case, it did not request such a disgorgement. He suggests that the SEC’s action was punitive, as the agency claimed that all LBC token sales were profits.

Deaton adds that the wording of the proposed permanent injunction, coupled with the SEC’s absolute refusal to single out secondary market sales or even user transactions, demonstrates the SEC’s intent to extend its jurisdictional reach to the market. secondary.

As reported by U.Today, the SEC sought a penalty equal to LBRY’s total monetary gain of $22,151,971, stating that LBRY’s gross receipts for its Section 5 violation amounted to the amount it had received in exchange for his sale of 280 million LBC on the trading platforms.

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