LBRY Appeals SEC Ruling on Token Sales
LBRY, a decentralized content-sharing platform, is challenging a federal judgeโs ruling that declared its token sales as unregistered securities. Following recent victories by Ripple and Grayscale against the SEC, LBRY intendsย to reverse the judgment by filing an appeal with theย Unitedย States Court of Appeals for the Second Circuit.
LBRYโs Appeal and Argument
In its appeal, LBRY argues that the SECโs verdict was flawed and seeks to overturn the judgment that ordered the platform to pay a civil penalty and prohibited future participation in unregistered digitalย currency 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. Regardlessย of previously announcing intendsย 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 probable precedent for other altcoins facing SEC scrutiny. It may likewise increase pressure on the SEC, particularly after the agency sought an appeal and stay in a case involving XRPย Rippleย (XRP), where a judge ruled that XRPย Rippleย (XRP) was not a security. LBRYโs legal team argues that the SECโs basis for seeking an appeal in the XRPย Rippleย (XRP) case is primarily due to dissatisfaction with the judgeโs ruling.
Hot Take
LBRYโs decision to challenge the SECโs ruling demonstrates the growing pushback from cryptocurrency platforms against regulatory actions. With recent victories by Ripple and Grayscale, thereย is renewed hope for a more favorable outcome for LBRY in its appeal. This case outlines the ongoing debate surrounding the classification of digitalย currencies as securities and the need for clearer regulations in the cryptocurrency industry.
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