The Securities and Exchange Commission has prevailed in a courtroom battle with decentralized publishing platform LBRY after arguing that its token was subject to regulatory oversight.
The court found that LBRY’s LBC token was an investment contract, even though the project did not sell it via an initial coin offering, or ICO. The project began in 2016 with the stated aim of decentralizing publishing.
“LBRY is mistaken about both the facts and the law,” the New Hampshire District Court said in the decision. Judge Paul Barbadoro granted the SEC’s motion for summary judgment, sealing the fate of a case that begin last March.
The decision is a major blow to crypto issuers, many of whom have argued that the SEC is pursuing a course of “regulation by enforcement….”
‘Enforcement 40’ for 2020
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