Lbry Plans to Appeal Court’s Decision on Securities Violation
The company behind LBRY, a blockchain publishing platform, has announced its intention to appeal a court’s ruling that found it guilty of violating federal securities laws. LBRY CEO Jeremy Kaufman stated that the company is ready to fight back against the decision, as it believes it to be unjust and incorrect. Kaufman also emphasized that LBRY’s appeal is not just for its own sake but also on behalf of other digital asset firms in the United States.
Court Decision and SEC’s Recent Losses
Last November, a New Hampshire court ruled in favor of the Securities and Exchange Commission (SEC), which accused LBRY of selling its LBRY Credits token without proper registration. LBRY argued that the tokens were not securities due to their utility on the platform, but the court rejected this claim. However, the SEC has faced setbacks in recent court battles, losing to Grayscale and facing challenges in its case against Ripple Labs.
Impact on LBRY and Current Token Performance
The lawsuit has had a significant impact on LBRY, with the company announcing plans to shut down following the final judgment. The SEC had previously reduced the financial burdens on LBRY due to its struggling state. Despite the legal challenges, LBRY Credits have experienced some price fluctuations, rising 35% in the past week but falling 8.7% in the past day.
Hot Take
LBRY’s decision to appeal the court’s ruling showcases its determination to defend itself and the broader cryptocurrency industry against what it perceives as unfair treatment by the SEC. The outcome of this appeal could have implications for the regulatory landscape surrounding digital assets in the United States.
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