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After losing their case with the SEC, LBRY said they “were not giving up.”

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Blockchain-based file-sharing and payment network LBRY lost the Security and Exchange Commission (SEC) case, saying, “We’re going to lick our wounds for a little bit but we’re not giving up.” A United States District court ruled in favor of the SEC and granted its request for a summary judgment filed on May 5. 

U.S. District Judge Paul J. Barbado wrote in the conclusion of the ruling that read, “Because no reasonable trier of fact could reject the SEC’s contention that LBRY offered LBC as a security, and LBRY does not have a triable defense that it lacked fair notice, the SEC is entitled to judgment.” The SEC is entitled to judgment because no reasonable trier of fact could reject the SEC’s contention that LBRY offered LBC as a security

According to the memorandum accompanying the judgement, the Securities and Exchange Commission (SEC) asserted in its complaint that LBRY issued and sold unregistered securities, which violated Section 5 of the Securities Act of 1933. On the other side, LBRY said that it is not selling securities and that its LBC token operates as a digital currency and is an integral component of the LBRY Blockchain. This was in response to the previous argument.

The Securities and Exchange Commission (SEC) originally accused LBRY in March 2021 with marketing unregistered securities. Even if LBRY is not quite ready to throw up the towel just yet, the company does feel that the verdict might be detrimental to the overall cryptocurrency business.

In a tweet that it posted, LBRY emphasized that “the language used in the court’s ruling sets an extraordinarily dangerous precedent that makes every cryptocurrency in the United States a security, including Ethereum.” This was said in reference to the court’s decision.

In relation to Ethereum, the SEC has recently asserted that the Ethereum Network is subject to regulation by the United States government. In any case, LBRY CEO Jeremy Kauffman has never been shy about expressing his displeasure with the SEC, whether it be through the wearing of a t-shirt that says “Fuck the SEC” or through his statement that “The SEC has very much demonstrated that they are out to destroy or damage the crypto industry in the United States.”

In light of this harsh ruling against LBRY, Kauffman tweeted, “Going to allow myself one scream,” and then proceeded to write “fuck” in all capital letters for a long period of time. After that, he continued by saying, “Alright, now back to work.”

Compiled by Coinbold

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