LBRY Prepares to Challenge Ruling on Violation of US Securities Law

LBRY Prepares to Challenge Ruling on Violation of US Securities Law

LBRY Challenges SEC’s Ruling on Unregistered Securities

The LBRY project has decided to contest the ruling by United States district judge Paul Barbadoro, which found LBRY guilty of selling unregistered securities. This move by LBRY comes after the court approved the SEC’s request for summary judgment, stating that LBRY, Inc. violated Section 5 of the Securities Act of 1933.

Because of  the ruling, LBRY was fined $111,614 and was prohibited from offering any securities in the United States. LBRY is the first digital currency project to challenge the SEC in a case like this.

The SEC has since initiated plenty of enforcement actions, identifying numerous digital currencies as “unregistered securities.” These alleged cryptocurrency securities now have a combined value of over $78 billion, with LBRY being the 36th largest by market capitalization.

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LBRY has expressed its intention to appeal the ruling, as confirmed by their notice on the social media platform, X.

Hot Take

LBRY’s decision to challenge the SEC’s ruling sets an important precedent in the cryptocurrency industry. With the SEC’s increased scrutiny of digital 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 continues  to evolve, it is critical for projects to navigate the regulatory landscape carefully to avoid legal consequences. The outcome of LBRY’s appeal will be closely watched by the industry as a whole.

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