2023 Fintech and Financing Conference & Expo

SEC Wins LBRY Protocol Case: Is Every U.S. Crypto A Security?

Decrypt | Kate Irwin | Nov 7, 2022

Unsplash Tingey Injury Law Firm Lady justice - SEC Wins LBRY Protocol Case:  Is Every U.S. Crypto A Security?

The Securities and Exchange Commission has won its case against LBRY, Inc., the company behind the LBRY protocol announced Monday along with a published copy of the ruling.

“Because no reasonable trier of fact could reject the SEC’s contention that LBRY offered LBC as a security, and LBRY does not have a triable defense that it lacked fair notice, the SEC is entitled to judgment,” U.S. District Judge Paul J. Barbado wrote in the conclusion of the ruling.

  • Ruling:  According to the ruling’s memorandum, the SEC argued in its complaint that LBRY “offered and sold unregistered securities in violation of Section 5 of the Securities Act of 1933.”
    • But LBRY does not believe it is selling securities, and countered that its LBC token “functions as a digital currency that is an essential component of the LBRY Blockchain.”
    • The SEC has not yet published a press release regarding the case. The agency initially charged LBRY for selling unregistered securities in March 2021.

See:  The SEC Will Be Watching You…Every Text You Send

LBRY wrote on Twitter in response to the ruling:

The language used here sets an extraordinarily dangerous precedent that makes every cryptocurrency in the US a security, including Ethereum.

Andrew Rossow, an attorney and adjunct law professor:

The Court missed the mark in identifying a distinction that possibly speaks to a further clarification of what a ‘reasonable expectation of profits’ means under Howey, as it applies to projects such as LBRY.

Continue to the full article --> here


NCFA Jan 2018 resize - SEC Wins LBRY Protocol Case:  Is Every U.S. Crypto A Security?The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Latest news - SEC Wins LBRY Protocol Case:  Is Every U.S. Crypto A Security?FF Logo 400 v3 - SEC Wins LBRY Protocol Case:  Is Every U.S. Crypto A Security?community social impact - SEC Wins LBRY Protocol Case:  Is Every U.S. Crypto A Security?

Support NCFA by Following us on Twitter!







NCFA Sign up for our newsletter - SEC Wins LBRY Protocol Case:  Is Every U.S. Crypto A Security?




 

Leave a Reply

Your email address will not be published. Required fields are marked *

nineteen + 17 =