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- LBRY Inc. has lost the case against the Securities and Exchange Commission.
- The company has publicized the news with a published copy of the order.
LBRY announced the news by posting on Twitter which says “We lost. Sorry, everyone. We are going to lick our wounds for some time but we are not dropping one’s bundle.”
As per the order’s note, the SEC debated in its complaint that LBRY gave and sold unlisted securities bootlegging Section 5 of the Securities Act of 1933. However, LBRY doesn’t trust it is selling securities and retorted that its LBC token works as a digital currency that is a necessary part of the LBRY Blockchain.
Regarding the order, LBRY posted on Twitter, writing that, “the language used here sets an unusually hazardous exemplar that makes every crypto in the country security, adding Ethereum.
Rossow’s statement
Andrew Rossow, an advocate said in an interview that “at the time the court is ruling integrated the Howey Test, which helps to describe what is and isn’t a security in the U.S., it missed the mark” in a prime area.
“The Court missed the mark in recognizing a difference that probably tells a further explanation of what a ‘sensible belief of profits’ means under Howey, as it relates to projects like LBRY.”
That difference splits what I trust to be LBRY’s identification that it is a ‘work in progress,” Rossow added, “and at the time it does wish to witness its investors make a payback on their investment, there is no other option rather than if others trust the project to have the advantage as the firm has portrayed it.”
“I trust that difference is clearly seen in that investors were motivated to keep onto their LBC, despite the improbabilityy for them to make a fast buck. LBRY’s token under consideration, LBC is low at 35% on the last day and 49% in the last 30 days, as per the data revealed by CoinGecko.
As per the order, a “status conference” is to be done for later settling “any left out problems” in concerning the SEC vs. LBRY case.
As the CEO of LBRY, Jeremy Kauffman has guessed, the order may be very well set as an exemplar and be applied to other cases regarding SEC which includes cryptocurrencies. The firm is indulged in this fight against the SEC since 2020.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
