It might be time to file an amicus brief, Stuart Alderoty said, thanking Hester Peirce. Members of the XRP and Stuart Alderoty, the chief legal officer of Ripple Labs community, have shown support on X (formerly Twitter) for Commissioner Hester Peirce of the United States Securities and Exchange Commission (SEC) in her opposition to alleged “injustice” in the LBRY lawsuit.
Thanking Peirce, Alderoty pointed out that in situations where injustices persist in non-fraud cases—particularly when consumers are still waiting on cases involving fraud to be resolved—it may be necessary to defy convention and voice concerns louder and sooner. In extreme cases, this may even involve submitting an amicus brief to address the matter.
On October 27, the SEC commissioner released a statement in opposition to the LBRY lawsuit. Peirce stressed that the commission has recently launched multiple enforcement actions against exchanges that deal with cryptocurrencies, including Binance, LBRY, Ripple, Kraken, and Coinbase.
Although Peirce said she was particularly troubled by the LBRY lawsuit, she was unable to talk about it because of the ongoing legal proceedings.
It was found in July that LBRY, a blockchain-based file-sharing and payment network, had broken Section 5 of the Securities Act of 1933. As a result, LBRY was prohibited from participating in unregistered cryptocurrency securities offerings involving its own token, either directly or indirectly, for the rest of time.
The cryptocurrency platform later gave up on its initial attempt to appeal a U.S. SEC ruling. Throughout the court case and the appeal, the XRP community provided support for the platform. But after the lawsuit ended with the SEC winning, LBRY made the decision to shut down, citing pressure from the government and financial difficulties as the reasons.
In reaction to the commissioner’s remarks, pro-XRP attorney John Deaton said it might be time to file an amicus brief. Deaton thinks it’s critical for someone with insider knowledge to testify in court, just as 75,000 individual holders have voiced their opinions.
Deaton had voiced his displeasure with the SEC’s actions against the business, claiming they put it in financial jeopardy.