Fun

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

News Feed - 2022-11-08 06:11:29

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 court case against the blockchain-powered publishing platform LBRY. According to a New Hampshire district court ruling, Judge Paul Barbadoro agreed with SEC that the project’s native asset LBC was considered an investment contract or a transferable share representing a certificate of interest. On Twitter, LBRY said the language used to sway the court’s decision “sets an extraordinarily dangerous 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 case where it argued that LBRY sold an unregistered security that violates section 5 of the Securities Act of 1933. Furthermore, the SEC seeks injunctive relief from the alleged proceeds of LBRY’s LBC token.


Despite LBRY arguing that the blockchain token was not a security, but rather an essential component of the LBRY blockchain network, Judge Paul Barbadoro granted the SEC’s motion for summary judgment. The New Hampshire District Court’s approved summary judgment insists: LBRY is mistaken about both the facts and the law.


Unlike a myriad of other crypto projects, LBRY did not have an initial coin offering (ICO), and LBRY contends that the SEC’s decision and the language used in the summary judgment sets an “extraordinarily dangerous precedent.”


The dangerous precedent means that the U.S. regulator could make “every cryptocurrency in the U.S. a security, including Ethereum,” LBRY added. The LBRY team disclosed that they plan to heal by licking their “wounds for a little bit,” but further added, “we’re not giving up.”


The LBRY case has a lot of people discussing whether or not other decentralized crypto assets will be targeted by the U.S. regulator. During the second week of September, the chairman of the SEC, Gary Gensler, said he wanted SEC to fine-tune crypto compliance.


The regulator also remarked that out of “the nearly 10,000 tokens in the crypto market,” he believes “the vast majority are securities.” In mid-July, Gensler explained that the SEC was looking at “tokens, the stablecoins, and the non-stablecoins” as far as regulatory clarity is concerned. Tags in this story dangerous precedent, Gary Gensler, ICO, initial coin offering, Language, LBC token, Lbry, LBRY’s LBC token, non-stablecoins, Paul Barbadoro, SEC, SEC Case, sec lawsuit, SEC vs. LBRY, Securities, Securities and Exchange Commission, Stablecoins, Tokens, unregistered securities, us regulator


What do you think about the U.S. Securities and Exchange Commission prevailing in a court case against the blockchain publishing platform LBRY? Let us know what you think about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. SEC Charges 4 People in $295M Global Crypto Ponzi Scheme That Duped Over 100,000 Investors REGULATION | 2 days ago Support for Ripple Grows in SEC Lawsuit Over XRP — CEO Says "It"s Unprecedented" REGULATION | 2 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleStablecoin GUSD’s Supply Jumps Close to 130% Higher in 30 Days Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItFidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand"


Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. "We continue to see demand, particularly from young investors, for access ... read more.Bill ‘On Digital Currency’ Caps Crypto Investments for Russians, Opens Door for Payments UAE Airliner Emirates to Launch NFTs and Experiences in the Metaverse Economist Predicts the Fed"s Response to Inflation Will Push Crypto Higher Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Fugitive Founder of Turkish Crypto Exchange Thodex Arrested in Albania
Fugitive Founder of Turkish Crypto Exchange Thodex Arrested in Albania Albanian authorities have detained the founder and chief executive of the Turkish cryptocurrency exchange Tho
Second Distribution By Celsius Network: Creditors To Receive Bitcoin Valued at $95,000 Each
Este artículo también está disponible en español. Once a prominent player in the cryptocurrency lending space, Celsius Network has commenced its second round of distribut
RBI Crypto: Indian Government Says Central Bank Has No Plan to Issue Cryptocurrency
RBI Crypto: Indian Government Says Central Bank Has No Plan to Issue Cryptocurrency The Indian government has told parliament that it does not have a plan to issue cryptocurrency t
Hong Kong’s Ether, Bitcoin ETFs will be ‘lucky to get $500m’
Tom Mitchelhill8 hours agoHong Kong’s Ether, Bitcoin ETFs will be ‘lucky to get $500m’Bloomberg ETF analyst Eric Balchunas says crypto investors should reign in their expectations over a spate of recently approved
Viral Philanthropic App Dreamr® Announces the Return of Charlie Rocket’s Dream Machine Tour
Viral Philanthropic App Dreamr® Announces the Return of Charlie Rocket’s Dream Machine Tour press release PRESS RELEASE. Social media dream builder Charlie Rocket and Dreamr Labs
Alice Ivey12 hours agoHow to use chatbots for virtual assistanceLearn the key strategies for leveraging chatbots in virtual assistance, from setting goals to designing intuitive interfaces and continuously enhancing thei
Bitcoin, Ethereum Technical Analysis: BTC Moves Towards $22,000 to Start the Weekend
Bitcoin, Ethereum Technical Analysis: BTC Moves Towards $22,000 to Start the Weekend Bitcoin moved towards $22,000 to start the weekend, as prices consolidated following Friday
Kirobo’s P2P Swap Button Enables Crypto Market’s First Slippage-Free, Direct Token Swaps
Kirobo"s P2P Swap Button Enables Crypto Market"s First Slippage-Free, Direct Token Swaps press release PRESS RELEASE. Tel Aviv – July 27, 2021 – Kirob
Old Trust Wallet iOS vulnerability from 2018 may still affect some accounts
Christopher Roark11 hours agoOld Trust Wallet iOS vulnerability from 2018 may still affect some accountsTrust Wallet accounts created between Feb. 5 and Aug. 21, 2018 on iOS devices may still be vulnerable to exploits, a
Physicist explains how his ‘Power Law’ model got to $10M Bitcoin by 2045
Tom Mitchelhill3 hours agoPhysicist explains how his ‘Power Law’ model got to $10M Bitcoin by 2045The price of Bitcoin could increase by 6300% in the next 15 years, according to Giovanni Santostasi’s power law mode
Central Bank of Brazil to Test Security and Transaction Privacy Levels of the Digital Real
Central Bank of Brazil to Test Security and Transaction Privacy Levels of the Digital Real The Central Bank of Brazil will focus its first digital real tests on determining the lev
Value Locked in Defi Slips to $74 Billion, Top Smart Contract Tokens Down Over 70% This Year
Value Locked in Defi Slips to $74 Billion, Top Smart Contract Tokens Down Over 70% This Year Decentralized finance (defi) has been hit hard by the recent crypto market rout as the