The First Circuit Court of Appeals Orders LBRY to Submit Brief in Legal Battle with SEC
The First Circuit Court of Appeals in Boston has instructed LBRY, the blockchain-based content platform, to submit its brief by November 1, 2023. This follows the legal battle between the Securities and Exchange Commission (SEC) and LBRY, culminating in a recent decision against the crypto platform.
SEC Slaps LBRY with $22 Million Penalty
Initially, the SEC slapped LBRY with a staggering $22 million penalty, accusing them of earning that amount from selling its native LBRY Credit tokens (LBC). However, the SEC later reduced the penalty to $111,614.
LBRY Claims Inflated Penalty
LBRY contested the SEC’s initial figure, arguing that it was vastly inflated and failed to consider their legitimate operational costs. The legal pressures caused concerns of a potential shutdown for LBRY.
LBRY Files Notice of Appeal
In a surprising turn of events, LBRY filed a notice of appeal in September to challenge the federal judge’s ruling in favor of the SEC. The CEO of LBRY believes that the SEC’s decision was unjust and incorrect and fears it could set a precedent for the wider cryptocurrency sector.
Significance of the Case
This move by LBRY aligns with recent victories by other cryptocurrency companies against federal regulators. Supporters and skeptics alike hope that this case will establish a new precedent in crypto regulation.
Hot Take: LBRY’s Appeal Could Shape Crypto Regulation
The ongoing legal battle between LBRY and the SEC is significant for the cryptocurrency industry. As LBRY fights back against what they perceive as an unjust ruling, their appeal could have far-reaching implications for how cryptocurrencies are regulated. This case joins a series of recent victories by crypto companies against federal regulators, indicating a growing resistance to heavy-handed regulation. The outcome of LBRY’s appeal will be closely watched by both supporters and skeptics of the crypto ecosystem, as it may set a new precedent in the realm of crypto regulation.
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