SEC wins its legal battle against LBRY

In the United States, the Securities and Exchange Commission is working towards better regulation of the cryptocurrency industry. In recent years it has engaged in a large number of tug-of-war against players in the industry. He had specifically investigated LBRY since 2016 and eventually sued the startup. A New Hampshire court judge just rang the death knell for this case.

A “dangerous precedent” for the cryptocurrency industry?

At the final hearing in the case between the LBRY team and the SEC, a New Hampshire court judge ruled in favor of the US regulator. Remember that the SEC has been keeping an eye on the LBRY team for the past six years. According to her, LBC, the ecosystem’s native token, is a security. It accuses LBRY of selling unregistered securities worth several million dollars in bitcoin in particular.

As part of the case, the SEC asked the judge for a permanent injunction banning the marketing of LBC. The regulator also asked the court to impose a return of its revenues on LBRY, via a compensation fund. LBRY has forbidden which technically did not violate the texts. He added that his token, LBC, functions as a digital currency, which is an essential component of the LBRY blockchain.

LBRY’s announcement on Twitter

“We lost, I’m sorry (…) The court decision could make all cryptocurrencies in the US safe, including Ethereum. It sets a dangerous precedent for the cryptocurrency industry (…) LBRY wrote.

The team promises to recover

We are going to heal our wounds for a while, but we are not giving up (…) The best is yet to come “said a note from LBRY.

Recall that LBRY is a blockchain-based file sharing and payment network. It powers decentralized platforms, mainly social networks and video platforms. For many, the platform is the YouTube of the blockchain.

As the verdict approached, the LBC was influenced by the possibility of a victory for the side of the government. It fell 35% in the last few days and 49% in the last 30 days, according to data from CoinGecko.

On social networks, this decision worries a large number of participants in the cryptocurrency market. They fear this jurisprudence will be raised in the current legal battles involving the SEC. If so, the damage could be significant for cryptocurrencies.

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Luc Jose Adjinacou avatar
Luc José Adjinacou

Far from dulling my enthusiasm, a fruitless investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to transmit information relating to this ecosystem with my pen.

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