SEC Loses Appeal in LBRY Vs. SEC

blockchain.news:

The United States Securities and Exchange Commission (SEC) has acknowledged publicly in the public record that the secondary market sale of LBRY Credits (LBC) tokens does not constitute the sale of a security. On January 30, an appeal hearing was held in the case LBRY vs. SEC. The settlement was reached at that hearing.

During the appeal hearing, Attorney John Deaton put an end to a key discussion, which many people hailed as a triumph for the whole cryptocurrency sector in its fight against the SEC's overreach regulation by enforcement.

During the hearing that took place on November 7, 2022, the SEC was granted a summary judgement in its favour. The court's decision characterised every sale of LBC tokens that took place over a period of six years as an investment contract, but it did not go into more detail about the particulars of each transaction. The Securities and Exchange Commission (SEC) had high hopes that it could progress its campaign to obtain credibility in the secondary market and bring it within its supervision at the same time. The Securities and Exchange Commission has requested that the judge of the district court in New Hampshire uphold the broad and vague injunction that prohibits the company's sale.

Because he believed the injunction to be too wide and imprecise, Deaton, who was acting in the capacity of amicus curiae for tech journalist Naomi Brockwell, pushed for clarification about secondary market transactions for LBC. An amicus curiae is a person or organisation that is not a party to a legal case but is authorised to assist a court by providing information, expertise, or insight that is relevant to the issues that are being litigated in the case. This can be done in order to shed light on the