{"id":69692,"date":"2022-11-08T09:10:33","date_gmt":"2022-11-08T07:10:33","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=69692"},"modified":"2025-09-07T21:37:20","modified_gmt":"2025-09-07T18:37:20","slug":"court-rules-lbrys-tokens-are-securities","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/court-rules-lbrys-tokens-are-securities\/","title":{"rendered":"Court rules LBRY&#8217;s tokens are securities"},"content":{"rendered":"<p>New Hampshire judge Paul Barbadoro<a href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.nhd.56253\/gov.uscourts.nhd.56253.86.0.pdf\">granted<\/a> the <span data-descr=\"U.S. Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span>&#8216;s suit against the blockchain startup LBRY on securities-law violations in the sale of its own tokens.<\/p>\n<p>A hearing to determine the next steps in the case is scheduled for November 21.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;No reasonable finder of fact could dispute the Commission&#8217;s assertion that LBRY offered LBC as an investment contract. The startup has no counterarguments regarding the lack of fair notice,&#8221; the document says.<\/p>\n<\/blockquote>\n<p>SEC<a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-blockchain-startup-lbry\"> filed<\/a> a lawsuit against LBRY in March 2021.<\/p>\n<p>According to the document, since July 2016 the firm offered digital assets to numerous investors, including U.S. citizens.<\/p>\n<p>The regulator also noted that LBRY worked with a cryptocurrency market maker who acted as an intermediary in the purchase and sale of LBC.<\/p>\n<p>In September 2022, LBRY&#8217;s CEO Jeremy Kaufman <a href=\"https:\/\/u1f987.com\/en\/news\/lbry-ceo-says-the-sec-aims-to-undermine-the-industry\">stated<\/a> that the regulator wished to &#8220;harm or destroy the industry in the United States.&#8221; In his view, the case against LBRY could &#8220;be applied to every crypto company&#8221;.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;The wording used creates an extraordinarily dangerous precedent that turns every cryptocurrency in the United States into a security, including Ethereum,&#8221; the team said in response to the court&#8217;s decision.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The full ruling in the SEC vs LBRY case can be read here.<\/p>\n<p>The language used here sets an extraordinarily dangerous precedent that makes every cryptocurrency in the US a security, including Ethereum. <a href=\"https:\/\/t.co\/plLZuzBRpO\">https:\/\/t.co\/plLZuzBRpO<\/a><\/p>\n<p>\u2014 LBRY \ud83d\ude80 (@LBRYcom) <a href=\"https:\/\/twitter.com\/LBRYcom\/status\/1589646941465763840?ref_src=twsrc%5Etfw\">November 7, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Andrew Rossow, a lawyer and adjunct professor of law, in an interview<a href=\"https:\/\/decrypt.co\/113754\/lbry-loses-sec-case-dangerous-precedent-crypto\"> Decrypt<\/a> stated that the verdict in the LBRY case could set a precedent for Ripple. The fintech startup is the defendant in the SEC&#8217;s case regarding the status of XRP tokens.<\/p>\n<p>In support of <a href=\"https:\/\/u1f987.com\/en\/news\/what-are-ripple-and-the-cryptocurrency-xrp\">Ripple<\/a> in the SEC&#8217;s litigation, <a href=\"https:\/\/u1f987.com\/en\/news\/blockchain-association-backs-ripple-in-lawsuit-against-the-sec\">Blockchain Association<\/a>,<a href=\"https:\/\/u1f987.com\/en\/news\/blockchain-association-backs-grayscale-in-suit-against-the-sec\"> Grayscale<\/a> and<a href=\"https:\/\/u1f987.com\/en\/news\/court-allows-sec-to-edit-documents-related-to-hinmans-ethereum-speech\"> Coinbase<\/a> backed them.<\/p>\n<p>Follow ForkLog&#8217;s Bitcoin news on our <a href=\"https:\/\/telegram.me\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Telegram<\/a> \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A New Hampshire judge, Paul Barbadoro, granted the SEC&#8217;s suit against the blockchain startup LBRY for alleged securities-law violations in the sale of its own tokens.<\/p>\n","protected":false},"author":1,"featured_media":69693,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1162,128,596],"class_list":["post-69692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-court-cases","tag-sec","tag-tokens"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=69692"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69692\/revisions"}],"predecessor-version":[{"id":69694,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/69692\/revisions\/69694"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/69693"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=69692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=69692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=69692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}