Attorney Deaton said he filed an appearance in the final hearing of LBRY v. SEC lawsuit on behalf of Naomi Brockwell.
Famous XRP Pro lawyer John Deaton said the upcoming hearing between open-source content distribution company LBRY and the SEC is an “incredibly important hearing for all crypto.”
The hearing is scheduled to be held at the Warren B. Rudman United States Courthouse in New Hampshire on January 30 at 3 PM. In a tweet today, attorney Deaton reiterated that he filed an appearance and amicus curiae brief on behalf of tech journalist Naomi Brockwell in the upcoming hearing.
It bears mentioning that the Investors Choice Advocates Network also filed an amici curiae brief supporting LBRY in the lawsuit. According to attorney Deaton, LBRY and the amici are requesting that the Judge clarify that the company’s native token, LBC, is not a security.
Furthermore, LBRY and Amici want the Judge to state that the November ruling that went in the SEC’s favor does not include secondary market transactions.
An incredibly important hearing for all of crypto. I filed an appearance and amicus brief on behalf of @naomibrockwell. We’re asking the Judge👨⚖️ to clarify that #LBC itself is NOT a security and to explicitly state that his ruling does not include secondary market transactions. https://t.co/BnuUwWrvlb
— John E Deaton (@JohnEDeaton1) January 25, 2023
Deaton considers the upcoming hearing important for the entire crypto industry because a win for the SEC would imply that the secondary market transactions of all coins and tokens could be illegal in the U.S.
Sensible Crypto Regulation Isn’t Coming Anytime Soon, Says Deaton
Deaton’s comments come days after the Crypto Law founder asserted that he does not see any “sensible” cryptocurrency regulations passed anytime soon. He noted in the Twitter thread that the earliest time the industry could get rational rules would be in the first half of 2025.
For Deaton, judicial results from the LBRY and Ripple lawsuits are the only way the industry could get guidance through the SEC’s regulation by enforcement policy.
“In other words, guidance will come by Federal District Court decisions like LBRY, Ripple, Dragonchain, etc.,” he said.
Notably, the summary judgment decision of the lawsuit favored the SEC in its entirety. However, the regulator conceded on record that not all LBC token holders saw the cryptocurrency as an investment vehicle, Deaton said.
Following the SEC’s comment, LBRY founder Jeremy Kauffman asked the SEC to provide clarity for LBC secondary market transactions. However, the SEC refused to comply with the request. Instead, the regulator claims it is not its duty to provide clarity for crypto tokens.
In a bid not to provide clarity, Deaton said the SEC requested a permanent injunction that does not distinguish between LBRY, its executives, and users.
The SEC is seeking a permanent injunction that does not distinguish between LBRY and its executives and users of the platform or secondary market transactions.
On January 30 we have a hearing to discuss the issue. I have filed an amicus brief and an appearance in the case.
— John E Deaton (@JohnEDeaton1) January 22, 2023