Richter makes it clear that security will in the Lbry case against SEC only for direct sale

Richter makes it clear that security will in the Lbry case against SEC only for direct sale

A judge of the district court of New Hampshire has made it clear that an injunction that was previously made in the legal dispute between the United States Securities and Exchange Commission (SEC) and the decentralized content sharing and publication platform LBRY, was only true for the direct sale of the project of the project.

The judgment came during an appeal hearing on January 30, 2023 and ended a centuries of debate between the Sec and the crypto community.

Richter makes decision in the Lbry case against sec

The court initially decided in November 2022 in favor of the SEC and gave the Commission to a summary judgment submitted in May 2021.

cryptopotato reported that the Sec Lbry sued in March 2021 and claimed that the platform was selling its native token lbry credit (LBC) as an unregistered securities.

The agency argued that the blockchain platform from 2016 to 2021 over 11 million

lbry, however, insisted that LBC was not a securities because millions of people were active on the platform before tokens were issued. The project also found that it did not contain any initial coin offer (ICO).

during the Appointment negotiation Yesterday, the SEC asked the judge to clarify the first judgment because it seemed to ban the sale of LBC. Interestingly, the tides changed when the judge explained that the injunction only applies to direct token sales.

remarkably the judgment was strongly influenced by the efforts of lawyer John Deaton, who was present as Amicus Curiae.

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Deaton cited a paper from lawyer Lewis Cohen, which evaluated all security suits that have occurred in the United States since the Howey test was introduced. The documents showed that no court recognized an underlying asset as security.

as Deaton's persuasiveness broke the surface, the judge turned to him and said: "Amicus, I will make it clear that my arrangement does not apply to secondary market sales."

The new development is a big win for the crypto community and could be helpful ripple in its ongoing procedure against sec.

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