LBRY Appeals SEC Ruling on Token Sales
LBRY, a decentralized content-sharing platform, is challenging a federal judge’s ruling that declared its token sales as unregistered securities. Following recent victories by Ripple and Grayscale against the SEC, LBRY aims to reverse the judgment by filing an appeal with the United States Court of Appeals for the Second Circuit.
LBRY’s Appeal and Argument
In its appeal, LBRY argues that the SEC’s verdict was flawed and seeks to overturn the judgment that ordered the platform to pay a civil penalty and prohibited future participation in unregistered cryptocurrency asset offerings. The company believes that the $22 million penalty was excessive and did not consider legitimate business expenses. The SEC later imposed a revised penalty of $111,614. Despite previously announcing plans to wind down operations, LBRY remains hopeful for a favorable outcome in its appeal.
Impact on Other Altcoins and Pressure on the SEC
The appeal by LBRY is seen as a potential precedent for other altcoins facing SEC scrutiny. It may also increase pressure on the SEC, particularly after the agency sought an appeal and stay in a case involving XRP, where a judge ruled that XRP was not a security. LBRY’s legal team argues that the SEC’s basis for seeking an appeal in the XRP case is primarily due to dissatisfaction with the judge’s ruling.
Hot Take
LBRY’s decision to challenge the SEC’s ruling demonstrates the growing pushback from crypto platforms against regulatory actions. With recent victories by Ripple and Grayscale, there is renewed hope for a more favorable outcome for LBRY in its appeal. This case highlights the ongoing debate surrounding the classification of cryptocurrencies as securities and the need for clearer regulations in the crypto industry.
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