LBRY Challenges SECโs Ruling on Unregistered Securities
The LBRY project has decided to contest the ruling by Unitedย States district judge Paul Barbadoro, which found LBRY guilty of selling unregistered securities. This move by LBRY comesย after the court approved the SECโs request for summary judgment, stating that LBRY, Inc. violated Section 5 of the Securities Act of 1933.
Becauseย ofย the ruling, LBRY was fined $111,614 and was prohibited from offering any securities in the United States. LBRY is the first digitalย currency project to challenge the SEC in a case like this.
The SEC has since initiated plentyย of enforcement actions, identifying numerous digitalย currencies as โunregistered securities.โ These alleged cryptocurrency securities now have a combined value of over $78 billion, with LBRY being the 36th largest by market capitalization.
LBRY has expressed its intention to appeal the ruling, as confirmed by their notice on the social media platform, X.
Hot Take
LBRYโs decision to challenge the SECโs ruling sets an important precedent in the cryptocurrency industry. With the SECโs increased scrutiny of digitalย currencies and their classification as securities, it was only a matter of time before a project pushed back. This case will likely have far-reaching implications for other cryptocurrency ventures and could potentially shape future regulations. As the cryptocurrency market continuesย to evolve, it is critical for projects to navigate the regulatory landscape carefully to avoid legal consequences. The outcome of LBRYโs appeal will be closely watched by the industry as a whole.
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