• The SEC recently won a lawsuit against LBRY on the grounds that they violated the Securities Act of 1933.
• John Deaton, a crypto enthusiast, believes that the LBRY hearing on January 30 will be a significant event in the crypto industry.
• The SEC has admitted that the majority of LBC token holders did not consider LBRY’s token to be an investment and used them for personal consumption.
The Securities and Exchange Commission (SEC) recently filed a lawsuit against LBRY on the grounds that the company violated Section 5 of the Securities Act of 1933 by marketing and selling unregistered securities. The SEC alleged that LBRY had been offering its LBC token, a digital asset, as an investment to the public without registering it as a security, thus violating securities law. LBRY, however, argued that the LBC token was not a security, but instead a form of digital money and an essential component of the network.
John Deaton, the creator of CryptoLaw and a well-known crypto enthusiast, believes that the outcome of the upcoming LBRY hearing on January 30 could be a pivotal event in the cryptocurrency industry. Deaton has pointed out that the SEC has admitted on the record that a significant number of LBC token holders, if not the majority of them, did not consider LBRY’s token to be an investment and used them for their own personal consumption purposes. Despite this, however, the SEC has declined to offer clarification on LBC’s secondary trades.
The SEC’s reluctance to provide clarification on the LBC token’s secondary trades could be interpreted as an indication that the SEC is uncertain of how to classify the token. This could be a sign that the SEC is open to the idea of cryptocurrencies being used as a form of digital money. If the SEC acknowledges that the LBC token is not a security, then this would be a landmark decision, as it would set a precedent for other cryptocurrencies and tokens.
The outcome of the LBRY hearing could have a major impact on the cryptocurrency industry and could potentially pave the way for the SEC to recognize some cryptocurrencies as digital money. If the SEC does recognize some cryptocurrencies as digital money, then this could open up a whole new world of possibilities for the industry. It could also lead to more mainstream adoption of cryptocurrencies, as well as more clarity for investors and developers.
The outcome of the LBRY hearing is therefore being closely watched by the cryptocurrency industry, as it could potentially change the game forever. Only time will tell what the future holds for the industry, but one thing is for sure, the LBRY hearing could be a turning point for the industry.