Ripple may be cautiously awaiting the outcome of a recent ruling by Judge Paul Barbadoro of the US District Court for the District of New Hampshire, who declined to make a determination on whether the secondary sale of LBRY Credits (LBC) constituted a security. could potentially set a legal precedent for another case involving Ripple brought by the US Securities and Exchange Commission (SEC), which is awaiting a ruling from District Judge Analisa Torres in the coming months.
In his ruling, Barbadoro retrained from expressing an opinion on whether the registration requirement applies to secondary market offerings of LBC. While this decision does not directly impact the Ripple case, it has caught the attention of John Deaton, a US attorney representing th ousands of XRP token holders, who sought clarification from Barbadoro on whether LBC is considered a security. Deaton stated that Barbadoro chose to maintain his "judicial restraint."
Interestingly, Barbadoro's recent stance marks a significant departure from his earlier conclusion during an appeals hearing in January. At that time, Deaton successfully argued that the secondary sale of LBC did not qualify as a securities offering. Barbadoro clarifi ed during the appeals hearing that LBCs are only considered securities when sold outright.
The SEC also acknowledges that secondary market LBC sales do not constitute securities. While the SEC obtained a summary judgment in November 2022, it opted to settle for a $22 million payment during a January 30 appeal hearing. However, in May, the SEC revised the Settlement amount to a $111,000 fine, citing LBRY's financial instability.
In the context of the Ripple case, US attorney and Ripple advocate Jeremy Hogan anticipates that Judge Analisa Torres will issue a ruling in the next few months. He believes that the broader details of the case will be revealed by the end of the year unless Ripple secures an outright victory. Hogan suggests that if the details of the ruling are unfavorable, the legal battle could extend for a considerable period through appeals. Nonetheless, Hogan asserts that the outcome will likely have minimal impact on typical XRP token holders .
