• LBRY Credits (LBC) token has experienced a 72% pump in the last 24 hours due to a major win against the US Securities and Exchange Commission.
• John Deaton, acting on behalf of tech journalist Naomi Brockwell as an amicus curiae, argued that the SEC’s judgement was too broad and none of the previous lawsuits included in the Cohen paper concluded that an underlying asset was a security.
• The judge ruled that the order given in November last year did not apply to secondary market sales. The crypto community has met this ruling with much optimism.
LBRY Credits Records Major Win Against SEC
The cryptocurrency market is trading in the green today, with LBRY Credits (LBC) being its biggest gainer, having pumped by 72% in the last 24 hours. This rally is due to a major win for LBRY against the US Securities and exchange commission (SEC).
SEC Criticized For Overreaching Through Enforcement
On November 7th 2022, SEC obtained a summary judgment in its favor as it deemed sale of LBC tokens to be an investment contract within six years of existence of token. The regulatory body hoped to use this judgement to get regulatory authority over secondary crypto market but LBRY filed an appeal on this judgement. Attorney John Deaton acted on behalf of tech journalist Naomi Brockwell as an amicus curiae and argued that injunction was too broad and referred to Lewis Cohen’s paper which assessed all lawsuits since SEC vs WJ Howey Co lawsuit but none concluded underlying asset was security.
Ruling In Favor Of LBRY
The judge acknowledged arguments made by Deaton and ruled that order given in November last year does not apply to secondary market sales. This ruling has been received optimistically throughout crypto community as SEC had filed several related lawsuits against Ripple, Gemini and Genesis earlier.
Win For Entire Crypto Sector?
The victory for LBRY has been seen as a win for entire crypto sector as well because SEC had been under criticism for regulating industry through enforcement only instead of offering clarity regarding regulations.
Celebration From Team LBRY
The team at LBRY took to Twitter celebrate their victory over SEC case which they won after appealing on judgement issued by court initially.