Jan 31, 2023 at 07:31The verdict is in, and it’s good news for LBRY Credits (LBC) holders.
During an appeal hearing on Jan. 30, the United States Securities and Exchange Commission (SEC) publicly declared that the sale of LBC tokens on the secondary market does not qualify as a security.
The recent ruling hinted at a truth long suspected by many; the vast majority of LBC token holders saw the token not as an investment but as a means of consumption.
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According to Attorney Jeremy Hogan, the SEC’s overreaching regulation enforcement has been hailed as a triumph for the entire cryptocurrency industry.
First word from the SEC v. LBRY hearing:
The SEC admitted on the record that the token itself is not a security.
Good job Mr. Deaton! https://t.co/tRXIQs5SSu
— Jeremy Hogan (@attorneyjeremy1) January 30, 2023
The SEC had set its sights on securing a far-reaching and ambiguous injunction following its triumph in Nov 2022.
However, the judges were quick to clarify that the victory was limited to the direct sale of the tokens in question and did not extend to indirect sales in the secondary market.
XRP and LBC rulings a lesson
The pivotal ruling sent a sigh of relief to XRP holders, due to Ripple’s current entanglement with the SEC over the sale of XRP tokens.
If the judge rules that secondary market transactions of $LBC by people unaffiliated with/have no investment intent in @LBRYcom are legal, it could set a precedent that would be favorable toward $XRP users. https://t.co/qGVydrXmAm
— Eleanor Terrett (@EleanorTerrett) January 30, 2023
BOOOOOOOOOM 💣 Great news for Crypto
SEC v. #LBRY hearing MAJOR UPDATE:
According to Attorney Jeremy Hogan the SEC admitted on the record that the token itself is not a security.
This sounds like #XRP is IS NOT A SECURITY !!!!
— EDO FARINA 🅧 XRP (@edward_farina) January 30, 2023
According to legal expert John Deaton, the fate of the SEC’s case against Ripple hangs in the balance.
Based on the SEC’s argument about the common enterprise, Deaton speculates that the presiding Judge Torres could reject both summary judgment motions and send the case to a jury trial.
A picture of John doing the peoples work one case at a time. pic.twitter.com/hHkhqPMqep
— Dreem (@Pharaoh4life) January 30, 2023
On Jan 22, 2023, Deaton emphasized that the industry can only expect direction and guidance through the outcomes of judicial proceedings brought forth by the SEC’s Regulation by Enforcement policy.
In other words, guidance will come by Federal District Court decisions like @LBRYcom @Ripple @dragonchain etc.
The industry must come together to help fight the SEC’s enforcement only policy. This is why @naomibrockwell agreed to let me represent her in @LBRYcom.
— John E Deaton (@JohnEDeaton1) January 22, 2023
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