• Judge Barbadoro of the U.S. District Court for the District of New Hampshire refused to rule on the status of LBRY Credits (LBC) as a security.
• The ruling potentially sets a legal precedent for Judge Analisa Torres, who will soon decide the fate of SEC’s case against Ripple.
• John Deaton, representing XRP token holders, sought clarification from Barbadoro on whether LBC should be considered a security but was declined due to Barbadoro’s “judicial restraint”.
Ripple and XRP Hold Their Breath
A US district court judge has refused to rule on the status of LBRY Credits (LBC) as a security, potentially setting a legal precedent for Judge Analisa Torres who will soon decide the fate of SEC’s case against Ripple.
Judge Refrains from Passing Judgment
Judge Paul Barbadoro, presiding over the U.S. District Court for the District of New Hampshire delivered his ruling in the case brought by the United States Securities and Exchange Commission (SEC) against LBRY, refusing to take a stance on whether or not registration is required for secondary market offerings of LBC.
John Deaton Challenges SEC’s View
John Deaton, a U.S attorney representing XRP token holders reached out to Barbadoro seeking clarification on whether or not LBC should be considered a security; however, Barbadoro chose to adhere to his „judicial restraint“ rather than provide an answer.
Previous Stance During Appeal Hearing
This shift comes after an appeal hearing in January where Deaton successfully argued that secondary sale of LBC does not qualify as securities offering; at this hearing, Barbadoro emphasized that LBC can only be classified as such if it meets certain criteria within their jurisdiction’s law enforcement guidelines.
While Judge Barbadoro has refrained from passing judgment regarding whether or not registration is required for secondary market offerings of LBC securities, he did emphasize during an appeal hearing in January that these offerings can only be classified as such if they meet certain criteria under their jurisdiction’s law enforcement guidelines – ultimately leaving Ripple and XRP holding their breath until further notice from Judge Torres‘ upcoming decision in regards to SEC’s case against them