New Hampshire Court Sides With SEC in Lawsuit Against LBRY, Project’s Team Says Loss Sets a ‘Dangerous Precedent’

The U.S. Securities and Exchange Commission (SEC) has won a tribunal lawsuit against the blockchain-powered publishing level LBRY. According to a New Hampshire territory tribunal ruling, Judge Paul Barbadoro agreed with SEC that the project’s autochthonal plus LBC was considered an concern declaration oregon a transferable stock representing a certificate of interest. On Twitter, LBRY said the connection utilized to sway the court’s determination “sets an extraordinarily unsafe precedent.”

U.S. Regulator Wins Judgement Against Decentralized Blockchain Platform LBRY

According to court documents, the U.S. regulatory watchdog, the Securities and Exchange Commission (SEC), has won a lawsuit wherever it argued that LBRY sold an unregistered information that violates conception 5 of the Securities Act of 1933. Furthermore, the SEC seeks injunctive alleviation from the alleged proceeds of LBRY’s LBC token.

Despite LBRY arguing that the blockchain token was not a security, but alternatively an indispensable constituent of the LBRY blockchain network, Judge Paul Barbadoro granted the SEC’s question for summary judgment. The New Hampshire District Court’s approved summary judgement insists:

LBRY is mistaken astir some the facts and the law.

Unlike a myriad of different crypto projects, LBRY did not person an archetypal coin offering (ICO), and LBRY contends that the SEC’s determination and the connection utilized successful the summary judgement sets an “extraordinarily unsafe precedent.”

The unsafe precedent means that the U.S. regulator could marque “every cryptocurrency successful the U.S. a security, including Ethereum,” LBRY added. The LBRY squad disclosed that they program to heal by licking their “wounds for a small bit,” but further added, “we’re not giving up.”

The LBRY lawsuit has a batch of radical discussing whether oregon not different decentralized crypto assets volition beryllium targeted by the U.S. regulator. During the 2nd week of September, the president of the SEC, Gary Gensler, said helium wanted SEC to fine-tune crypto compliance.

The regulator besides remarked that retired of “the astir 10,000 tokens successful the crypto market,” helium believes “the immense bulk are securities.” In mid-July, Gensler explained that the SEC was looking astatine “tokens, the stablecoins, and the non-stablecoins” arsenic acold arsenic regulatory clarity is concerned.

What bash you deliberation astir the U.S. Securities and Exchange Commission prevailing successful a tribunal lawsuit against the blockchain publishing level LBRY? Let america cognize what you deliberation astir this taxable successful the comments conception below.

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