• The United States Securities and Exchange Commission (SEC) recently admitted that the sale of LBRY Credits (LBC) tokens in the secondary market do not constitute a security.
• This settlement was confirmed during an appeal hearing in the LBRY vs. SEC case on Jan. 30, and many have called it a victory for the entire crypto industry against overreaching regulation by enforcement.
• Attorney John Deaton represented tech journalist Naomi Brockwell as an amicus curiae at the hearing and successfully argued that LBC’s secondary market transactions were not securities.
SEC Settles Security Claim in LBRY Case
The United States Securities and Exchange Commission (SEC) recently admitted that the sale of LBRY Credits (LBC) tokens in the secondary market do not constitute a security. This settlement was confirmed during an appeal hearing in the LBRY vs. SEC case on Jan. 30, and many have called it a victory for the entire crypto industry against overreaching regulation by enforcement.
Attorney Representing Tech Journalist
Attorney John Deaton represented tech journalist Naomi Brockwell as an amicus curiae at the hearing. An amicus curia is an individual or organization that is not a party to a legal case but is permitted to assist a court by offering information, expertise, or insight that has a bearing on the issues in the case. Deaton successfully argued that LBC’s secondary market transactions were not securities.
SEC’s Overreach Regulation By Enforcement
The SEC was hoping to seek affirmation on an ambiguous injunction after scoring a victory during a hearing in November 2022, but judges made it clear that their judgment only applied to direct sales of tokens rather than those sold through secondary markets. Deaton cited Lewis Cohen’s examination of all security lawsuits since Howey Co., which showed no court ever acknowledging underlying assets as being securities at any point throughout his analysis of U.S.-based cases..
Victory For Crypto Industry
Deaton’s argument persuaded judges to recognize that LBC’s secondary market transactions were not securities, which ultimately resulted in this important win for cryptocurrency overall against overreaching regulations from organizations such as the SEC. This outcome sets what could be seen as positive precedent going forward when similar cases arise within this space moving forward as well as creating more clarity around regulatory guidance within digital asset markets overall..
Conclusion
The decision made by Judge Tuerk clearly shows that cryptocurrency can still find success even when fighting organizations with immense power such as government entities like the SEC who attempt to impose their influence upon markets they are unfamiliar with or simply don’t understand fully yet — something which has been seen frequently throughout recent years involving digital assets and blockchain technology alike..