The SEC has settled its security claim for the Library Token, which was being sued for similar reasons to XRP and Ripple, marking a massive win for the entire crypto market. Although the Library Token’s initial offering was deemed a security, sales on the secondary market were not. This clarifies that the token itself is not a security but the way it was sold in the beginning constituted a security. The news is seen as super bullish for XRP since Ripple didn’t even perform an ICO.
Massive Win for Crypto: SEC Settles on Security Claim for Library Token
Today was a momentous day for the crypto community, particularly for XRP supporters, as the US Securities and Exchange Commission (SEC) settled on its security claim for the Library Token. The Library Token, which was being sued by the SEC for the same reasons as Ripple and XRP, brought light to the ongoing battle between the SEC and cryptocurrency companies.
Library Token’s Initial Token Offering Was Declared a Security
Back in November of last year, The Library Token came out and announced that they lost their case against the SEC, based on the claim that their initial token offering was actually a security. This sparked several discussions within the crypto community on the definition of securities and how it could impact the industry.
Update on Library Token’s Sales on Secondary Markets
However, new developments have emerged. On January 30, the SEC announced that the sales of the Library Token on the secondary market do not constitute a security. This recent update has clarified that while the way the token was sold in the beginning did constitute a security, the token itself is not a security. It was this issue that led to the punishment inflicted by the SEC.
Bullish for XRP
The Ripple team and XRP supporters are pleased with this update as it indicates that the SEC can adjust their stance on crypto-related entities. Ripple’s XRP did not even have an ICO, so this could be super bullish for the XRP token, hinting that the SEC may modify their security claim against the currency.
Overall, the Library Token SEC case and the recent update pave the way for hopeful progress within the crypto community. While the industry is still in its early stages, updates like this will serve to clarify regulation and ultimately improve the space for all participants.