Ripple CLO Stuart Alderoty suggests that SEC commissioner Hester Peirce needs to speak out louder and sooner when injustice prevails in non-fraud cases.  
Read more on: https://thecryptobasic.com/2023/10/28/ripple-clo-reacts-to-hester-peirce-criticism-of-sec-enforcement-action-against-lbry/
#ripple #LBRY #crypto #crypto2023 #cryptonews

LBRY, a decentralized content platform that enables creators to publish, distribute, and monetize their content, has been in a legal battle with the United States Securities and Exchange Commission (SEC). In this article, we’ll explore what LBRY was accused of by the SEC, the original fine demanded by the SEC, and why the SEC requested a lower fine for LBRY. We’ll also discuss what this legal battle means for the future of decentralized content platforms.

What was LBRY accused of by the SEC?

In March 2021, the SEC filed a civil suit against LBRY, alleging that the firm’s sale of its token LBRY Credits (LBC) constituted an unregistered securities offering. The SEC won the case in November 2022, and the preceding judge ruled that LBC was indeed a security.

What was the original fine demanded by the SEC from LBRY?

The SEC demanded a fine of $22 million from LBRY for conducting an unregistered securities offering.

Why did the SEC request a lower fine for LBRY?

The SEC recognized that LBRY is defunct, ceasing operations, and without the funds to pay a larger fine. In a recent filing, the SEC asked a New Hampshire District Court to impose a lower fine of $111,614 instead of the original $22 million it demanded from LBRY.

What does LBRY’s legal battle with the SEC mean for the future of decentralized content platforms?

LBRY’s legal battle with the SEC underscores the need for decentralized content platforms to navigate the legal and regulatory landscape effectively. It also raises questions about the role of decentralized content platforms in the larger landscape of securities law. The SEC’s action against LBRY could potentially discourage the development and adoption of decentralized content platforms, which would be detrimental to innovation in the industry.

Takeaways:

LBRY, a decentralized content platform, was accused by the SEC of conducting unregistered security offerings through the sale of its token LBRY Credits (LBC).

The SEC originally demanded a fine of $22 million from LBRY.

The SEC requested a lower fine of $111,614 instead of the original $22 million it demanded from LBRY, recognizing that LBRY is defunct, ceasing operations, and without the funds to pay a larger fine.

Decentralized content platforms must comply with securities regulations to avoid legal and financial consequences.

Conclusion:

LBRY’s legal battle with the SEC highlights the importance of companies understanding and complying with securities regulations. Failure to do so can result in significant legal and financial consequences, as seen in LBRY’s case. Companies must understand the securities laws that apply to them and take steps to ensure compliance to avoid legal and financial troubles. The SEC’s actions could potentially discourage the development and adoption of decentralized content platforms, which could hinder innovation in the industry.

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CryptosHeadlines.com - The Leading Crypto Research Network:

In the LBRY case, the judge has confirmed a violation of securities laws, ratifying the agreement reached after an appeal hearing.

Initially, the #SEC proposed a settlement amount of $22 million, which was later revised to $111,000 considering LBRY’s financial situation. The revised settlement amount has been approved by the judge as part of the ruling.

Binary Distinction Made in LBRY Case Regarding Sale of LBC Token

In the LBRY case, the judge determined that the sale of LBC tokens directly by the issuing company violated securities laws during their initial issuance. However, the ruling did not address whether the subsequent trading of LBC tokens between traders on exchanges violated securities laws. The focus of the verdict was primarily on the initial issuance of the tokens by the company.

Following the distinct outcome of the LBRY case, speculation regarding the Ripple case has intensified. Lawyers analyzing the situation suggest that the #LBRY case could potentially serve as a precedent for Ripple. They emphasize that the outcome of the Ripple case may not result in a complete win or loss; instead, there are areas where Ripple could experience both victories and setbacks. The analysis highlights the nuanced nature of the legal proceedings for Ripple.

Hogan Disappointed with LBRY Case Verdict: Calls for Clarity in Cryptocurrency Law

Attorney Jeremy Hogan expressed disappointment with the LBRY case verdict, highlighting the judge’s limited understanding of cryptocurrency-related matters. Hogan emphasized that the ruling did not sufficiently address whether cryptocurrencies should be classified as securities. His critique underscores the importance of clearer legal interpretations to navigate the complexities of cryptocurrency law.

Lawyer John E. Deaton expressed his view that it was a positive outcome that the court did not categorize the sale of LBRY tokens in the secondary markets as a “violation of securities laws” and refrained from providing an opinion on the matter. Deaton acknowledged this as a better-than-nothing situation, implying that it could be seen as a favorable aspect of the court’s decision.

Ripple CTO David Schwartz expressed satisfaction, considering it a victory, that the court did not classify the normal usage of the LBC token as a violation of securities laws. This recognition implies that the regular utilization of the token is considered permissible within the legal framework, providing a positive outcome for the case.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

$XRP #xrp #ripple

In recent regulatory news, the Securities and Exchange Commission (SEC) has imposed a hefty fine of $111,000 on LBRY, a decentralized content sharing platform. This development has sparked concerns about the potential implications for Ripple, another prominent blockchain company currently engaged in a legal battle with the SEC. In this article, we delve into the details of LBRY's fine and explore the uncertainty surrounding Ripple's future in light of this enforcement action.

SEC's Action Against LBRY: LBRY, a blockchain-based content sharing platform, was recently hit with a $111,000 fine by the SEC for allegedly conducting an unregistered securities offering. The regulatory agency claimed that LBRY's native tokens (LBRY Credits) were securities and that the company violated securities laws by not registering the offering with the SEC.

Uncertainty Looms for Ripple: The SEC's enforcement action against LBRY raises questions about the potential ramifications for Ripple. Ripple Labs, the company behind the XRP cryptocurrency, has been entangled in a legal battle with the SEC since December 2020. The SEC alleges that Ripple conducted an unregistered securities offering through the sale of XRP, which Ripple vehemently denies. The outcome of the LBRY case could have implications for Ripple's legal proceedings and the broader crypto industry.

Key Similarities and Differences: While the LBRY case and Ripple's situation share certain similarities, there are notable differences between the two. Both involve allegations of unregistered securities offerings, but the specifics of each case, including the nature of the tokens and the legal arguments put forth, differ significantly. Therefore, it is crucial to approach them as separate legal matters.

Implications for Ripple: The outcome of the LBRY case could provide insights into how the SEC's approach to unregistered securities offerings may impact Ripple's legal battle. It remains uncertain whether the SEC's enforcement action against LBRY will influence the outcome of Ripple's case or if it sets any legal precedents that could impact the broader crypto industry. Ripple and its supporters continue to defend their position vigorously, asserting that XRP is not a security and highlighting the differences between their case and the LBRY enforcement action.

The Future of Regulatory Oversight: The SEC's recent actions underscore its ongoing efforts to regulate the cryptocurrency space. As the industry continues to evolve, regulatory clarity and compliance become increasingly critical. Companies operating in the crypto space must navigate the evolving regulatory landscape carefully to ensure compliance and mitigate potential legal risks.

Conclusion:

The SEC's imposition of a $111,000 fine on LBRY for an alleged unregistered securities offering has raised concerns about Ripple's legal battle and the wider implications for the crypto industry. While there are similarities between the LBRY case and Ripple's situation, it is essential to consider them as separate legal matters. The outcome of the LBRY case may provide insights into the SEC's approach, but its direct impact on Ripple's fate remains uncertain. As the regulatory environment evolves, it is crucial for cryptocurrency companies to maintain compliance and engage in ongoing dialogue with regulators to navigate potential legal challenges successfully.

#LBRY #security #XRP #RIPPLE #dyor

Blockchain-based content-sharing platform LBRY has dismissed its appeal against the Securities and Exchange Commission. 
Read more on: https://thecryptobasic.com/2023/10/25/lbry-voluntarily-dismisses-appeal-against-sec-after-winding-down/
#LBRY #SEC #crypto #cryptonews #crypto2023