LBRY vs. SEC: ‘LBC not a security’ sets precedent for Ripple case

The 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.

Read the full SECURITIES LBRY ruling 

According to Attorney Jeremy Hogan, the SEC’s overreaching regulation enforcement has been hailed as a triumph for the entire cryptocurrency industry.

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.

 

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.

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.