Crypto Market News: In the wake of the U.S. Securities and Exchange Commission’s (SEC) decision to revise the penalty on LBRY, the crypto startup commented on the agency’s dual narrative around LBR being a security. In recent court filings, the US SEC cited LBRY’s “inability to pay” the $22 million penalty as the reason behind revising it to $111,614. In fact, the Commission stated LBRY lacked funds and that it was in a near defunct status. The penalty was levied as part of the lawsuit filed by the SEC over the sale of LBRY’s LBC alleged violation of the US securities laws.
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Meanwhile, LBRY responded to the SEC’s emphasis on LBC being a security. The company referred to the SEC’s comments about its staff statements on the securities law.
LBRY Refers To SEC’s Coinbase Filing
In a recent development, the SEC asked the judge to deny Coinbase’s request to compel the agency to respond to a rulemaking petition. The request essentially sought clarity about how securities laws apply to the crypto market. Gary Gensler, the SEC Chair, has been facing criticism for his stance that a majority of the crypto assets are securities as per existing rules. However, the SEC denied the request to clarify about the same. LBRY’s latest statement is targeted at the same dual approach by the SEC:
“The SEC repeatedly cited a single sentence from an unpaid volunteer moderator in our community chat as evidence that LBC was a security.
Meanwhile, the SEC argues in Coinbase filing that even statements from senior staff of the SEC about securities law don’t mean anything.”
Meanwhile, Gensler has also been facing the heat from lawmakers over the lack of clarity in the crypto market.
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Crypto Market News: Responding to the news of the U.S. Securities and Exchange Commission (SEC) deciding to revise the penalty in the LBRY lawsuit, XRP lawyer John Deaton said the agency did not care about individual investors when it sued the company. In the SEC’s supplemental brief on remedies submitted with the US District Court of New Hampshire, a part of the revised remedies was decided to be a civil penalty of $111,614. Explaining the reason for revision of remedies, the Commission cited LBRY’s inability to pay the initially set penalty of $22 million.
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“SEC Failed To Clarify On LBRY”
Deaton, the attorney who represents the more than 70,000 XRP token holders in the SEC lawsuit, said the agency failed to protect a single investor. He said the SEC refused to clarify despite the agency’s lawyers accepting that a majority of the LBRY users did not acquire an investment. He further used the phrase “shame on you” addressing SEC Chair Gary Gensler’s alleged failure to protect LBRY users.
“If the SEC cared at all about individual investors and users of the LBRY platform it would have agreed to address the issue of secondary sales. Instead, the SEC refused to provide clarity although its lawyers agreed most users didn’t acquire an investment. The SEC is a disgrace.”
The criticism surrounding the LBRY remedy revision comes at the back of SEC Chair Gary Gensler’s grilling by lawmakers during a hearing by the House Financial Services Committee.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.