SEC Settles On Calling Token a “Security” Claim? Ripple Win Ahead

The latest hearing in the LBRY Vs SEC case turned out to be a good news for the entire crypto community, especially for XRP holders.
By Ashish Kumar
Updated May 16, 2025
LBRY Bids Farewell

XRP Lawsuit News: U.S. Securities and Exchange Commission (SEC) finally came to a settlement over calling a crypto token a “Security”. As per sources, the SEC during the latest hearing of the LBRY lawsuit on record admitted that the token itself is not a security. However, the affirmation comes after the commission received the summary judgment in its favor.

Advertisement
Advertisement

Good news for XRP holders?

The latest hearing in the LBRY Vs SEC lawsuit turned out to be, as expected, good news for the entire crypto community, especially for XRP holders. The US district court heard the oral arguments on the application of remedies. John Deaton, Amicus Curiae in the XRP lawsuit also submitted an amicus brief in the LBRY case.

As per details, the Judge had to decide whether a crypto asset that allows the owner to send instructions to a network can embody an investment scheme by a company. While the commission wanted the judge to issue a broad injunction against the sale of the LBRY token in which the token itself becomes the security. Read More XRP Lawsuit News Here….

Advertisement
Advertisement

What did the judge said?

Eleanor Terrett, a Fox Business journalist reported that the SEC lawyer involved in the LBRY lawsuit conceded on the record that the secondary market sales of LBC tokens do not constitute a security. While Attorney stated that the judge talked about an article while he forced the commission to commit on record.

As expected, Judge ruled that the secondary market transactions of LBRY tokens by people unaffiliated with no investment intent in the LBRY case are legal. This could directly set a precedent for the XRP holders in the long running XRP lawsuit.

Advertisement
Ashish Kumar
Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.