SEC Fails to Regulate LBC Token Sale, Crypto Industry Wins Major Battle
• The United States Securities and Exchange Commission (SEC) admitted on record that the sale of LBRY Credits (LBC) tokens in the secondary market doesn’t constitute a security.
• Attorney John Deaton settled a major debate during the appeal hearing, seeking clarity for LBC secondary market transactions as the SEC was awarded summary judgement in its favor.
• The SEC has asked a New Hampshire district court judge to affirm the wide, ambiguous injunction prohibiting its sale.
The United States Securities and Exchange Commission (SEC) has recently admitted on record that the sale of LBRY Credits (LBC) tokens in the secondary market does not constitute a security. This ruling comes as a result of an appeal hearing in the LBRY vs. SEC case on January 30th, and has been seen by many as a victory for the entire crypto industry against the SEC’s overreaching regulations.
The SEC had originally won summary judgement in its favor during a hearing in November 2022, and was hoping to gain affirmation on an ambiguous injunction that would prohibit its sale. This injunction was seen as being overly broad and ambiguous, and so Attorney John Deaton – representing tech journalist Naomi Brockwell as an amicus curiae – sought clarity for LBC secondary market transactions.
Deaton’s successful settlement of this debate means that the SEC’s wishes of gaining legitimacy in the secondary market and bringing it under its purview have been thwarted. The SEC has now asked the New Hampshire district court judge to affirm the wide, ambiguous injunction prohibiting its sale.
The outcome of this appeal hearing has been seen as a major win for the cryptocurrency industry as a whole, as it marks a successful attempt at preventing the SEC from imposing overly broad regulations on the sale of digital assets. It also serves as a reminder that the industry should remain vigilant in protecting itself from the SEC’s attempts to exert its authority on the industry.