Key Points:
The agreement was reached on January 30 during an appeal hearing in the LBRY v. SEC case.
Attorney John Deaton resolved a significant point of contention at the appeal hearing, which many viewed as a victory for the whole cryptocurrency industry against the SEC’s overreaching regulation via enforcement.
On November 7, 2022, the SEC was given summary judgment in its favor. The verdict, which covered a six-year period, classified each sale of the LBC token as an investment contract without going into specifics about the transactions. The SEC hoped to make progress in its mission to legitimize the secondary market and bring it under its jurisdiction. The SEC has requested the district court judge in New Hampshire to uphold the broad, confusing injunction forbidding its sale.
Deaton sought clarification for LBC secondary market transactions because he thought the injunction was vague and overbroad as an amicus curiae representing tech journalist Naomi Brockwell. An amicus curia is a person or group that is not a party to a lawsuit but is allowed to support a court by providing data, knowledge, or insight that is relevant to the case’s issues.
Deaton highlighted a report written by commercial contract lawyer Lewis Cohen that looked at all security claims brought in the US since the SEC vs. W.J. Howey Co case. Throughout Cohen’s analysis of security cases in the United States, no court admitted that the underlying asset was security at any stage.
The judge was convinced by Deaton that LBC’s secondary market transactions weren’t securities. In an effort to avoid providing explanation for LBC, the SEC requested an order that does not distinguish between LBRY, the company’s management, and users. “Amicus, I’m going to make it clear that my order does not apply to secondary market sales,” the judge said, turning to face Deaton.
Many people in the cryptocurrency community, especially holders, were relieved by the decision in the case. The SEC has filed a securities complaint against Ripple for the sale of XRP tokens. The long-running Ripple litigation may benefit from the current decision indicating that the secondary market selling of LBC tokens does not constitute as a security.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Annie
Coincu News
The Mango DAO settlement follows Avraham Eisenberg's 2022 exploit of Mango Markets, which resulted in…
dYdX Trading will shut down the dYdX v3 platform on October 28, 2024, to make…
Bitget Wallet OmniConnect was launched to enable developers to integrate Telegram Mini-Apps with multichain ecosystems.
The recent approval for BlackRock’s Bitcoin ETF options raises concerns about a shift from physical…
MapleStory N Web3 game built on Avalanche, aims to leverage nostalgia and blockchain technology, adding…
Coinme overcame early challenges to become a leader in cash-to-crypto services, with over 40,000 locations…
This website uses cookies.