Blockchain-based file-sharing and payment network LBRY lost the Security and Exchange Commission (SEC) case, saying, “We’re going to lick our wounds for a little bit but we’re not giving up.” A United States District court ruled in favor of the SEC and granted its request for a summary judgment filed on May 5.
U.S. District Judge Paul J. Barbado wrote in the conclusion of the ruling that read, “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.”
The SEC argued in its complaint that LBRY offered and sold unregistered securities, violating Section 5 of the Securities Act of 1933, as per the ruling’s memorandum. On the other hand, LBRY countered that it is not selling securities and its LBC token functions as a digital currency that is an essential component of the LBRY Blockchain.
In March 2021, SEC initially charged LBRY for selling unregistered securities. Though LBRY is not ready to give up straight away, it believes that the ruling could take its toll on the entire crypto industry.
LBRY shared a tweet emphasizing that “the language used in the court’s ruling sets an extraordinarily dangerous precedent that makes every cryptocurrency in the U.S. a security, including Ethereum.”
Speaking of Ethereum, SEC has recently claimed Ethereum Network falls under the U.S. government’s purview. Well, LBRY CEO Jeremy Kauffman has always been showing discontent with the SEC, whether it is wearing a “Fuck the SEC” t-shirt or commenting “The SEC has very much demonstrated that they are out to destroy or damage the crypto industry in the U.S.”
With this stinging decision against LBRY, Kauffman tweeted, “Going to allow myself one scream,” and then wrote all caps and extended “fuck.” He then added, “Alright, now back to work.”
