According to Cointelegraph: LBRY, a blockchain-based file-sharing and payment network, has filed a notice of appeal against the Securities and Exchange Commission (SEC) after losing the legal battle in November last year. The SEC sued LBRY in March 2021 for selling its LBRY Credit token (LBC) as unregistered securities, citing the 1933 Securities Act. The U.S. District Court for the District of New Hampshire granted the SEC’s motion for summary judgment against LBRY in November, resulting in a $111,614 civil penalty and barring the platform from participating in unregistered offerings of crypto assets.
Despite LBRY previously announcing it would wind down operations completely following the July 11 final judgment, it has now changed course and filed a notice of appeal. The appeal seeks to overturn the SEC's decision and fine, coupled with permission to invest in unregistered crypto asset securities in the future. While LBRY claims the SEC has wrongly classified LCB as an unregistered security, the regulator has recently had significant losses in court against Ripple and Grayscale Investments, signaling a changing dynamic in the crypto industry.
It remains to be seen whether LBRY's new legal course will be successful, but the development suggests that companies are increasingly willing to fight regulatory action in the cryptocurrency space.
