SEC Rules Sale of LBRY Credits (LBC) Tokens Does Not Constitute a Security

• The United States Securities and Exchange Commission (SEC) admitted on record that the sale of LBRY Credits (LBC) tokens in the secondary market doesn’t constitute a security.
• During an appeal hearing on Jan. 30, Attorney John Deaton settled a major debate and argued that the SEC’s injunction was ambiguous and broad.
• This settlement is seen as a big win for the entire crypto industry and a step towards more clarity in the regulation by enforcement.

On January 30th, 2023, the United States Securities and Exchange Commission (SEC) made a landmark ruling that the sale of LBRY Credits (LBC) tokens in the secondary market does not constitute a security. This ruling was the result of an appeal hearing and a long-standing debate regarding the SEC’s overreach regulation by enforcement.

Attorney John Deaton represented tech journalist Naomi Brockwell as an amicus curiae to seek clarity for LBC secondary market transactions. During the appeal hearing, Deaton argued that the SEC’s injunction was ambiguous and broad. The SEC was awarded summary judgment in its favor during the Nov. 7, 2022 hearing, but Deaton sought to make the judgment more specific so that it would not be applied to all secondary market transactions.

The settlement of this appeal hearing is seen as a big win for the entire crypto industry. This ruling is a step towards more clarity in the regulation by enforcement, and it is a positive sign for the industry that the SEC is willing to provide more clarity on the sale of tokens in the secondary market. This ruling could potentially open the door for more clarity and certainty in the future of crypto regulations.

This ruling is a sign of the maturation of crypto regulations and the progress that has been made in the past few years. It demonstrates that the SEC is willing to listen to arguments from experts in the crypto industry and take their advice into consideration. It also shows that the SEC is willing to take a more nuanced approach to regulating the industry and make sure that their regulations are not overly broad.

The settlement of this appeal hearing is a major milestone for the crypto industry. It demonstrates that the SEC is willing to listen to expert opinion and provide clarity on ambiguous regulations. This is a positive step forward for the industry and a sign that the industry is continuing to mature and develop into a viable part of the global financial system.