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Hello this is Matt on the moon family Sedan Channel Attorney John Deaton Shared a huge Victory which occurred in Court today and uh you better believe It's it's certainly going to have an Impact on the secv Ripple case as well You better believe that a judge annaliza Torres is definitely going to be aware Of this this ruling that occurred uh Having to do with the remedies portion Of the secv library case now of course a Couple months back the SEC did win in Court so yes Library lost but it doesn't Mean that the actual entire case is over We're at the remedies portion where a Penalty so on and so forth would be Assigned and something gigantic is at Stake uh and technically it still is but I think we know at this point how this Is going to go thanks to news shared by Attorney John Deaton and and thanks to His efforts quite frankly because the Question is even though a library was Found in the secb library case to have Sold unregistered Securities and of Course I dispute that but anyway that's The case even though that was found to Be the case There's still this question of what About what about transactions in Secondary markets which is a gigantic Issue in the secv Ripple case because What is it the entire ecosystem that Constitutes some sort of common
Enterprise does that mean that you and I Are in a common Enterprise and you know If the SEC wins in the Ripple case then You and I we can't uh lawfully transact And send xrp back and forth to one Another and that's that's that's what's At stake here because frankly this is Kind of a I'm hoping for outright when Regarding the Ripple case but even if Ripple loses there could still be a path Forward where uh you know secondary Markets are continuing to allow to exist And what's crucial is that it's found by The judge of course it's understood that It's not the xrp token itself that is The security so in this in court today Uh the judge articulated uh such that When he writes his final final judgment One thing with teaser he said today and We'll see how he words it but he did Write today it did state today in court That a secondary Market transactions Um obviously not covered by his ruling That's huge news that's absolutely Gigantic news and and the judge got to The SEC to agree to that so the SEC is On record in court agreeing with that Assessment very cool stuff so but before Giving you uh the additional specifics And so on and so forth I do want to be Clear I do not have a legal or financial Background of any kind I'm not offering Legal or financial advice and you Definitely should not buy yourself
Anything because of anything I say right I'm just an Enthusiast who enjoys making YouTube videos about crypto related Topics but just as a hobby and just for Fun all right so yesterday January 29th There were a couple tweets shared by Attorney Louis Cohen now attorney Louis Cohen uh wrote um I can't remember the Full name of this piece but it was that Over 100 page piece and he painstakingly Went through all of the case well dating Back I believe it was 76 years to find That uh there is no there are record There's literally no case ever that Finds that the underlying asset itself Is the security and so he prepared this Himself I can only imagine the amount of Work this took gigantic document and Then handed over handed it over to the Judge in the Ripple case as well as to The judge in the library case and it's Very telling and the judges should be Aware of this and so attorney Louis Cohn Is the one that wrote the file this is This is again yesterday before we got The good news today so yesterday wrote So as many uh as I'm sorry so as some May know tomorrow is a big day for a Library and the entire crypto Community The judge and secv Library Inc will hear Oral arguments on the application of Remedies in Amicus brief from Attorney John Deaton and local council is here Please have a look and then he shared a
Link to that and then he said at stake Is whether a judge buys the argument That a crypto asset basically a number That allows the owner to send Instructions to a network Can somehow embody an investment scheme By a company that is about to dissolve Watch this space And then there's somebody named pyrus Not familiar with this individual Doesn't matter but it seems to not have A clue as to you know uh case president Or anything surrounding anything never Do with Securities laws and is Disagreeing with attorney Lewis code so This individual Papyrus wrote to him and Said this brief is 100 red herring EG Additionally quote additionally Considering that Brockwell was unaware Of the monetary value associated with LBC she could not have had a reasonable Expectation of profits end quote So it's not a security of one person Didn't know it had value absurd so this Person's not buying things I said just Because one person didn't know that it Had an open market value that that means It's not a security and that person Thinks that's absurd but again this Individual nothing against them I don't Know who it is they do not know what They're talking about and attorney Deaton jumped in to kind of set the Record straight here he said the
Underlying asset in an investment Contract is not the security any asset Can be offered and sold as an investment Contract Bitcoin has but that didn't Turn Bitcoin into a security Beavers have been sold as Securities They remain beavers LBC is not a Security it's code and then attorney Louis Cohen jumped in to back up Deaton There and he said yep The relevant question at any given time Is whether the LBC token is being sold In an investment contract a transaction Is the seller at the time of the sale Inducing the buyer to purchase from her By making undertakings to the buyer About the profit potential of the asset Exactly Um and then attorney Deaton expanded Upon that and wrote the application of Howie is not that difficult to analyze Those involved in crypto litigation and Regulatory policy must get judges and United States regulator slash Legislators to stop focusing on the Token itself The token itself is actually somewhat Irrelevant to the Howie analysis Hester Purse herself has criticized her Colleagues at the SEC for focusing too Much on the token itself Watch her be interviewed by Tony from Thinking crypto YouTube channel below And go to the 18 minute 58 second time
Mark in the video a sitting commissioner Of the SEC made the point that attorney Louis Cohen is making she said quote We tend at the SEC to talk about the Token itself as a security and that's Really a shorthand what we've done now Is said that orange groves are kind of Like the security end quote and so look At like that's the culture of thought at The SEC Hester purse is giving you Inside info right there that we would Otherwise not be privy to that is the Way that they're thinking of it then This is completely out of line with case Law and you can see it in the way that The SEC has brought enforcement actions Against entities in the world of crypto It's the asset itself and so even though They know that's not something that's Like that's not actually a winning Argument they still push it but they Have to kind of walk a fine line You'll See as we go further because I'm going To expand upon that in this video here's What attorney Hogan had to say and this Was just this morning I believe yeah There we go 10 28 a.m January 30th Um so this was hours before the uh the Hearing uh got underway in New Hampshire And Attorney John Dean again just be Clear I'm not sure if I stated it Clearly enough at the outs of the video Attorney John Deaton was there and did Speak directly with the judge but even
So but anyway hours before the hearing Attorney Hogan wrote The Following today Is the remedies Hearing in the secv Library case the SEC wants the judge to Issue a broad vague injunction against The sale of the library token in which The token itself becomes the security Attorney Deaton will be attending live And report back at 6 PM Eastern on Crypto law note the problematic language In the sec's proposed order quote and This is this is what the SEC is arguing It's because they're and mind you They're looking for a permanent Injection injunction to prevent any of These transactions uh that that have Been deemed to be violations from ever Happening again so look at the Problematic languages attorney Hogan Cites it says quote all persons in Active concert or participation with it End quote An attorney Hogan then says that would Be me and you I've never heard of an Injunction applying to individuals who Are not a party to a lawsuit but that's What the SEC wants and he shared this Screen grab a blown up for if you want To read the whole thing here but that is What they're stating here the SEC wants Everybody that transacts the token uh to Uh For them to not be allowed to do it Anymore that talk about overreach that's
Incredible And so then somebody named cryptocanigan Responded to attorney Hogan and said how Does the SEC argue Library token is a Security of a company that no longer Exists and so I'll pause to note in case You hadn't heard uh Jeremy Kaufman the Founder has indicated that it's as close To 100 certain as possible that uh Library itself the company not the token But the company is going to cease to Exist as a result of all this And so attorney Hogan responds and says They don't dare so instead they ask for A permanent injunction that includes Every person who would sell the token It's a back door so again this goes back Against because they're they're their Culture of thought at the SEC which is Disgusting is that the asset itself is The security and so they don't dare Argue that it's a security of a company That no longer exists because again Library is about to no longer exist in Attorney Hogan says they don't dare Argue that so instead they want this Injunction that's what they're going for So that all transactions uh would be Included in that injunction including Stuff for me and you if we had LBC we Wanted to transact it so he's saying That's a back door that's so that's how They're getting about they're walking This kind of fine line where they're not
Outright making the claim technically That it's a security of a defunct Company but if they get the ruling that They're asking for then it might as well Be that's the fine line that they're Walking so you can see how they're doing The sneaky thing that would just Absolutely destroy regular investors And not just investors but users of the Of the library credit token Um and then there is also this somebody Named finrus Alvin wrote to Jeremy Hogan And said I don't really understand how The SEC is going to apply this to Foreigners it doesn't seem like people From other countries are excluded and Attorney Hogan wrote back and said well If the token itself is a security under U.S law and you sell it to me then You've sold an unregistered security to Me unlawfully unless there's an Exemption yeah so um that would Undoubtedly be true I guess at that Point it's kind of like a question of if You do the unlawful thing and you're in A different country to what degree is The is the United States going to work With the foreign Nation to enforce some Sort of penalty on an individual that Does such a thing and maybe if it were Big enough big enough transactions in Terms of dollars caught enough attention Maybe something would happen but I think The truth is that there's so many
Actions you know transactions that take Place in reality I don't know that they Could really reasonably enforce all of That or even most of it necessarily but I I don't know how many people after This goes down if it goes down really Truly negatively would would still try And use the tokens I well we'll see if We hope well hopefully we won't see Actually hope we don't get to that point Here Um and so then there was this excuse me From Attorney John Deaton this is uh This is today in the afternoon he said Just finished speaking on the record With the judge in court Is not over check in at 6 PM the judge And I talked about attorney Louis Cohen's article and he forced the SEC to Commit on the record And that's incredible and I actually Took some notes because I I I'm going to Go through it in just a second here but Um I I listen to what attorney Deaton Had to say last night or in the evening Whatever Um and then uh and then uh one second Here yo actually let me just leave it There here so anyway I did I actually Did like some types of notes here in This one sheet of dead tree in my hand Right here and uh and you know there Actually it seemed like a a lot of People there relatively speaking for 50
To 60 people actually in the courtroom So it's a public hearing there just Wasn't um like you see in the Ripple Case there wasn't a a number to call in So we couldn't just call and listen or Else I'm sure all sorts of us would have Done that uh but it was open to the Public it's just you have to go to New Hampshire so if you're not anywhere near That probably not convenient especially If you're on the west coast you're gonna Fly out there Um but anyway So uh the judge's decision and Library Case Um did not address secondary market Sales which is why John filed an amicus Brief in the first place this this past December so again John Dean he he filed The Amicus brief after Library actually Lost because it didn't it didn't um it Just it wasn't clear what that meant for You know Market participants second and Second secondary markets and so he Represented somebody named Naomi Brockwell who has never bought or sold Any Library credits ever but does hold Them And um And so then uh attorney Deaton you know He's he he isn't taking a position on Any fines that Library may have to pay He's literally just there to represent Naomi Brockwell because this decision
Will impact all secondary Market Participants and attorney Deaton told The judge that his decision reads as Though the underlying asset itself LBC Is a security and if the judge's Intention is not to communicate that LBC Itself is a security then we need to Address and clarify the situation that's Literally what attorney Deaton told the Judge undoubtedly very respectfully in Court though Um and having you know read the final Ruling and shared it on this channel Yeah it wasn't good it definitely was Not good Um and the judge told attorney Deaton That he will not be issuing an Injunction that would impact Participants in secondary markets so That's fantastic that is big news that They're they're not going to issue any Sort of injunction that would have that Would impact participants that were not A part of the transactions that were Found to be in violation that that's Very good news and attorney Deaton got The SEC attorneys on record to Acknowledge that even though LBC sold by Library to a business is a Securities Violation that's been determined uh if The receiving party then sells their LBC To a third party in that case the Judge's order would not apply to the Sale and so that's why attorney Dean
Says that's a major victory and he's Absolutely correct right there the only Way that there could possibly be an Exception and this is the route that the SEC assat attorneys try to go first as Well you know it could still be a Violation because if they're an agent That happened to be party to this or Somehow but then ultimately the judge Pressed him as that's that's what Attorney Dean stated the judge pressed The SEC on this and they acknowledge That if it's like if it's somebody That's that's not specifically cited to Be a party in this case like you know It's not Library well then it's it's It's clearly a not part of this ruling Now moving forward that's absolutely Gigantic news because we know that That's what's true but for the SEC assat Attorney Pricks who are are basically uh You know doing really slimy stuff Because they they want it to be the case That the asset itself is a security this Is a blow to them because this is the Judge effectively saying no And the judge says that although there Was not enough evidence to support Libraries Fair notice defense that we Shouldn't pretend that there is perfect Clarity surrounding the crypto asset Class especially in a case like uh like This one where there there was no Initial coin offer and I found that to
Be very telling because what does Everybody at the SEC say from Kim Jong-ins are on down oh but everything's Perfectly clear very very clear well Even the judge here who said that there Wasn't enough evidence from a technical Perspective for libraries Fair noticed Events even he says yeah he really needs To really need to have more clears even The judge said that the judge ruled in Favor of the SEC That's amazing that is absolutely Astonishing and the judge says that he Intends to include language in his Remedy decision indicating that Secondary market sales are not included In his ruling against Library And um and the judge asked attorney Deaton if that would satisfy him and Attorney Deaton then suggested uh Language be included stating that the Token itself is not a security but the Judge rejected that stating that he is a Minimalist so I appreciate that attorney Deaton pushed for that because that Would make it completely unquestionable What the status of the state of things Here is but even without that I think It's still clear because look if you Think about it if the token itself were A security that would mean that every Time it's sold by anyone that would be An illegal transaction The fact that the judge is saying
Secondary market sales are not included In his decision means the token itself Could not possibly uh be a security it Logically files that it could not be an Attorney Dean pointed it out Um in the evening when he did his live Stream And um You know it's also unfortunate an Attorney didn't point this up none of This would be necessary if we just got Instead Clarity from Congress but he Pointed out and I think he's right You know unless we unless we get clarity From Congress ASAP this is going to be Uh Very it's going to be It's gonna be like the rules of the road Effectively for potentially years Because again outside of getting Something from Congress I don't think We're going to get some sort of clarity From the SEC what else is there that's Why this is such a big deal like this is Really truly to the positive this is Fantastic Uh the SEC cited the library case 20 Times in the Ripple lawsuit uh since the SEC had a clear Victory there and uh if Indeed the judge does what he says what He says he's going to do and writes the Secondary market sales are not in Violation of Securities laws that fact Could be shared with judge Torres in the
Ripple case so that that could be a very Possible result from the positive result From the library case for xrp holders So This is highly consequential that's why I've been focusing on this uh for weeks I've been mentioning it on and off on my Channel it's it's a big deal it's a Really big deal and so should exchanges Re-list X Out the LBC token uh attorney Deaton was asked that during the live Stream and you know yes this should be a Ruling you know of course technically we Need to see the judge write the damn Ruling first but yes this should be a Ruling to give exchanges confidence to Re-list LBC but Deaton says you know It's hard to predict and there may maybe Some exchanges that are very Conservative and are not convinced the Judge's comments on secondary market Sales are clear enough so it will also Depend on the specific wording of the Judge's ruling so we're going to wait on That and as soon as we get it I'll be Happy to talk about it on my channel Here but this is really positive if you Have something like this happen in the Secv Ripple case even if Ripple loses There's there's it's highly likely There's still a path forward for xrp to Continue to exist and be used in the United States so I don't know what that Would mean for xrp being adopted as a Bridge currency via on-demand liquidity
It depends on because there's a number Of ways things can kind of fall but this Is this is good it's good that this Happened and again judge tours in the in The Ripple lawsuit is going to see this And uh so she doesn't have to make the First move along these lines another Judge already did that so We'll be watching her let me know what You think in the comment section below What I'm done I'm not a financial Advisor you should not buy or sell Anything because of anything I say or Right that would be a very very very bad Idea until next time to the Moon family Sedan
