The court recognized the LBRY startup tokens with securities
Judge of the state New Gampshire Pol Barbaspee satisfied the SEC lawsuit against Lbry blockchain-startup with accusations of violating the legislation on securities when selling their own tokens.
Hearing regarding the determination of further steps in the case is scheduled for November 21.
“No reasonable factor researcher can reject the commission’s statement that LBRY proposed LBC as an investment contract. Startup has no counterarguments regarding the failure to provide a fair notification, ”the document says.
SEC filed a lawsuit against LBry in March 2021.
According to the document, since July 2016, the company offered digital assets to numerous investors, including US citizens.
The regulator also indicated that Lbry collaborated with a cryptocurrency market maker who acted as an intermediary when buying and selling LBC.
In September 2022, the startup CEO Jeremy Kaufman announced the desire of the regulator to “cause damage or destroy the industry in the United States”. In his opinion, the process of LBry can “apply to every crypto company”.
“The formulations used create an extremely dangerous precedent that turns every cryptocurrency into the United States into securities, including Ethereum,” the team reacted to a court decision.
The Full Ruling in the Sec vs Lbry Case Can Be Read Here.
The Language Ussed Here Sets an Extraordinarily Dangerous Precedent that Makes EVERY CRYPTOCURENCY in the USA A Security, Including Ethereum. https: // t.Co/pllzuzbrpo
– LBry 🚀 (@Lbrycom) november 7, 2022
Andrew Rossou, a lawyer and an adjunct professor of law, in an interview with Decrypt said that a verdict in the case with LBry could become a precedent for Ripple. Fintech Startap is the defendant at the SEC claim regarding the status of XRP tokens.
Recall, in support of Ripple in the lawsuit, the SEC was Blockchain Association, Grayscale and Coinbase.
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