- LBRY warns the SEC’s over-the-top conditions to classify all active blockchain tokens securities and thus the whole industry is at risk.
- The SEC alleged, from 2016 to 2020, LBRY sold $11M of unregistered securities, and thus demanded its permanent injunction, also to pay the funds received back with interest and a civil penalty fine.
- Even if the U.S. regulator succeeds in terminating the LBRY Inc., the LBRY platform and ecosystem will remain unaffected.
LBRY Inc., a blockchain-based file-sharing and payment network that powers decentralized platforms, primarily social networks, and video platforms; was already facing difficulties since the United States Securities and Exchange Commission (SEC) began its investigations back in May 2018. Recently, i.e. after almost three years, the SEC filed a new complaint against the firm, accusing it of selling unregistered securities worth $11 million. But, LBRY refused the deed, claiming, if validated, their charges will threaten the overall crypto-industry; since the conditions included in the allegations declare most of the crypto tokens as securities.
Aggressive Standards will Bring Crypto-Industries’ to Ruin
Announced on “helplbrysavecrypto.com”, a website that was launched to raise awareness around the legal battles; the company expressed its frustration with the SEC’s disastrous and aggressive new standards. It warned their over-the-top conditions to classify all active blockchain tokens securities. And evidently, LBRY is not alone in thinking their unreasonable demands will lead the crypto-industry to ruin.
On Tuesday, Jeremy Hogan, partner at Hogan & Hogan, made a statement in favor of LBRY and even linked the suit to the SEC’s almost similar allegations against Ripple. He said, Ripple wasn’t the first company to face the flames of such demands, and won’t be the last either. Proceeding further, he boldly affirmed that the whole industry is at risk.
SEC’s Allegations & LBRY’s Retort
SEC alleged, between 2016 to 2020, LBRY has sold unregistered securities, worth $11 million to its retail and institutional investors, and also the platform users. And in light of such misdoings, the regulator seeks an immediate and permanent injunction barring the company from selling any more tokens. The penalty, so listed, also demands the company to pay back the funds received with interest along with a civil penalty fine.
In response to their accusations, LBRY pleads innocence and averred their claims hold no ground. So far, LBRY is trying time and time again to settle with the Commission however, all their attempts were rudely denied. The company divulged that the Commission stays mum and is not at all ready to offer any terms that will even remotely allow token exchange by the U.S. citizens or let the LBRY Inc. operate, even within the confines of the law. It seems, the SEC is out for blood and will only stop when it demolishes the firm.
LBRY Platform and Ecosystem Remain Unaffected
LBRY Inc. does build the LBRY protocol and its platform. However, even if the U.S. regulator’s complaint succeeds in terminating the Inc., it will have close to no effect on the LBRY platform and ecosystem; since the already well-established decentralized platform has roots spread across six continents, backed by hundreds of people, most of which aren’t even a part of the LBRY Inc.
Bitcoin Future in the U.S. Seems Turbulent
As the regulators are scouring the crypto-industries with their magnified visions, more and more crypto-analysts are postulating appalling yet seemingly feasible odds. Recently, the billionaire American hedge fund manager and philanthropist, Ray Dalio articulated in the not-so-distant-future, the U.S. government might take measures to ban Bitcoin.
