In the LBRY case, the judge confirmed securities law violations and approved the agreement reached after an appellate hearing.

Initially, the SEC proposed a settlement amount of $220,000, which was later revised to $111,000 in light of LBRY’s financial situation. As part of the ruling, the judge has approved the revised settlement amount.

The binary distinction between LBC token sales in the LBRY case

In the LBRY case, the judge ruled that the issuing company’s direct sale of LBC tokens violated securities laws during the initial offering. However, the ruling did not address whether subsequent trading of LBC tokens between exchange traders violated securities laws. The focus of the ruling was primarily on the company’s initial token offering.

Speculations about the Ripple case intensified after the mixed results of the LBRY case. Lawyers analyzing the situation suggest that the LBRY case could become a precedent for Ripple. They stressed that the outcome of the Ripple case may not result in a complete victory or defeat; instead, Ripple may experience victories and setbacks in certain areas. The analysis highlights the delicate nature of Ripple's legal proceedings.

Hogan disappointed with LBRY case ruling: calls for clarity in cryptocurrency laws

Attorney Jeremy Hogan expressed disappointment with the decision in the LBRY case, highlighting the judge’s limited understanding of cryptocurrency-related issues. Hogan stressed that the ruling did not adequately address the question of whether cryptocurrencies should be classified as securities. His criticism highlights the importance of clearer legal interpretation to navigate the complexities of cryptocurrency law.

Attorney John E. Deaton expressed his view that the fact that the court did not classify the sale of LBRY tokens on the secondary market as a “violation of securities laws” and did not issue an opinion on the matter was a positive outcome. Deaton acknowledged that this was a better-than-nothing situation, meaning that this could be seen as a favorable aspect of the court’s decision.

Ripple CTO David Schwartz expressed satisfaction, believing it was a victory that the court did not classify the normal use of LBC tokens as a violation of securities laws. This recognition means that within the legal framework, the normal use of tokens is considered permissible, providing a positive outcome for the case.