LBRY Challenges SEC’s Ruling on Unregistered Securities
The LBRY project has decided to contest the ruling by U.S. 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.
As a result of the ruling, LBRY was fined $111,614 and was prohibited from offering any securities in the United States. LBRY is the first cryptocurrency project to challenge the SEC in a case like this.
The SEC has since initiated several enforcement actions, identifying numerous cryptocurrencies as “unregistered securities.” These alleged crypto 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 announcement on the social media platform, X.
Hot Take
LBRY’s decision to challenge the SEC’s ruling sets an important precedent in the crypto industry. With the SEC’s increased scrutiny of cryptocurrencies 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 crypto ventures and could potentially shape future regulations. As the crypto market continues to evolve, it is crucial 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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