• LBRY Credits (LBC) has recorded a major win against the US Securities and Exchange Commission (SEC).
• The SEC had obtained a summary judgment in its favor in November 2022, which stated that sale of LBC tokens was an investment contract.
• However, Attorney John Deaton helped the company secure a major win by arguing that the injunction did not apply to secondary market sales.
LBRY Credits Win Against SEC
The cryptocurrency market is trading in the green today with the biggest gainer being LBRY Credits (LBC), which has pumped by 72% in the last 24 hours. This rally comes as the company records a major win against the US Securities and Exchange Commission (SEC).
SEC’s Summary Judgment
In November 2022, the SEC obtained a summary judgment in its favor claiming that sale of LBC tokens constituted an investment contract. The regulatory body wanted to use this judgment to obtain regulatory authority over the secondary crypto market.
Attorney John Deaton acted on behalf of tech journalist Naomi Brockwell as an amicus curiae and argued that previous lawsuits had not concluded that underlying assets were securities. He then noted that such secondary market sales should not be classified as securities according to these previous cases.
Judge Rules In Favor Of LBRY Credits
The judge acknowledged Deaton’s argument and ruled that order given in November last year did not apply to secondary market sales. This ruling has been seen as a victory for not just LBRY but also for the entire cryptocurrency sector, given that it marks another instance where enforcement from regulators has been limited.
Crypto Community Reacts To Win
The crypto community celebrated this victory with much optimism, with several other companies facing similar related lawsuits from the SEC such as Ripple, Gemini and Genesis. The LBRY team took to Twitter to express their joy regarding this ruling.