New Hampshire Court Sides With SEC in Lawsuit Against LBRY, Project’s Team Says Loss Sets a ‘Dangerous Precedent’ – Regulation Bitcoin News
The United States Securities and Exchange Commission (SEC) has won a court case against blockchain technology-based publishing platform LBRY. By ruling of the New Hampshire district court, Judge Paul Barbadoro agreed with the SEC that the original asset of the LBC project should be treated as an investment contract or a transferable share representing an important certificate heart. On Twitter, LBRY said the language used to sway the court’s decision “sets an extremely dangerous precedent.”
US Regulator Wins Judgment Against Decentralized Blockchain Platform LBRY
Based on court documentsUS regulatory watchdog, the Securities and Exchange Commission (SEC), won a case Debate that LBRY sold an unregistered security in violation of section 5 of the Securities Act of 1933. Furthermore, the SEC seeks mandatory relief from the proceeds of LBRY’s alleged LBC tokens.
Although LBRY argued that the blockchain token is not a security, but an essential component of the LBRY blockchain network, judge Paul Barbadoro made the SEC recommendation of summary ruling. The summary judgment approved by the New Hampshire District Court asserts:
LBRY was confused about both the facts and the law.
Unlike countless other crypto projects, LBRY has no Initial Coin Offering (ICO) and LBRY dispute that the SEC’s decision and the language used in the summary judgment set an “extremely dangerous precedent.”
The dangerous precedent means the US regulator could make “every cryptocurrency in the US a security, including Ethereum,” LBRY added. Team LBRY disclosure that they plan to heal by licking “the wound a little,” but added, “we’re not giving up.”
The LBRY case has a lot of people discussing whether other decentralized crypto assets are being targeted by the US regulator. During the second week of September, the chairman of the SEC, Gary Gensler, speak he wants the SEC to regulate crypto compliance.
The regulator also commented that out of “nearly 10,000 tokens in the crypto market”, he believes that “the majority are securities.” In mid-July, Gensler explain that the SEC considered “tokens, stablecoins and non-stablecoins” as far as regulatory clarity is concerned.
What do you think of the US Securities and Exchange Commission’s victory in a lawsuit against blockchain publishing platform LBRY? Let us know your thoughts on this topic in the comments section below.
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