In recent news, Ripple ally LBRY's request that the court hear an oral argument for its motion to limit the SEC's remedies was granted, and the date was set for Jan. 30.

John Deaton, a crypto lawyer who filed an amicus brief in the LBRY lawsuit, says that the Jan. 30 hearing about LBRY's motion to limit the SEC's options could be the most important crypto hearing to date.



He says why he thinks that. He says that a big problem is that the SEC is trying to get disgorgement from a third party, which has a lot of effects and could set a very bad example.

Second, Deaton brings up the language that the SEC wants to use in the permanent injunction. He says that this proposed language could, in theory, let the SEC reach into the secondary market and stop transactions from people who only use the platform and have never bought LBC as an investment.

Third, the SEC is asking for punitive disgorgement in a case that has nothing to do with fraud. The LBRY lawsuit, like the Ripple lawsuit, is not about fraud. Instead, it is about a violation of Section 5, which was not registering LBC sales.

Deaton said that when the SEC won the KIK case, it didn't ask for this kind of money back. He thinks that the SEC's action was unfair because the agency said that all sales of LBC tokens were profits.

Deaton says that the language of the proposed permanent injunction and the SEC's refusal to make any distinctions between secondary market sales and transactions by users show that the SEC wants to expand its authority into the secondary market.