New Hampshire Court Stand With The SEC In Battle With LBRY Platform
In a judicial dispute with the decentralized publishing platform LBRY, the Securities and Exchange Commission won by asserting that its token was under regulatory control.
In its ruling, the New Hampshire District Court stated that LBRY is wrong regarding the law and the facts. The SEC’s move for summary judgment was granted by Judge Paul Barbadoro, putting an end to a case that started in March.
Even though the initiative did not sell the LBC token through an initial coin offering (ICO), the court determined that it constituted an investment contract. The decentralizing publication was a declared goal of the project when it started in 2016.
“In summary, what the evidence in the record discloses is that LBRY promoted LBC as an investment that would grow in value over time through the company’s development of the LBRY Network.
While some unknown number of purchasers may have acquired LBC in part for consumptive purposes, this does not change the fact that the objective economic realities of LBRY’s offerings of LBC establish that it was offering it as a security. B. Did LBRY Receive Fair Notice?”
The judgment is a big setback for cryptocurrency issuers, many of whom have claimed that the SEC is using a regulation-by-enforcement approach. Similar to LBRY, many proponents of token issuance contend that the commission has not adequately informed the crypto industry of how it would exercise its authority.
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