SEC Settles LBRY Case on Security Claims: Landmark Crypto Decision

The U.S. Securities and Exchange Commission (SEC) has settled its case against LBRY Credits on security claims. This decision is a massive moment for crypto, marking a pivotal point in the regulatory landscape surrounding digital assets. The case has been closely watched by the entire crypto community, with many fearing broader implications for other blockchain projects.

The SEC's complaint charges LBRY with conducting an unregistered offering and sale of crypto asset securities. This formed the basis of the SEC's argument that LBRY violated securities laws by offering its LBC tokens to investors without registering them with the agency. The SEC seeks permanent injunctive relief to prevent LBRY from engaging in similar activities in the future.

The SEC received summary judgment in its favor during the hearing on November 7. While the verdict did not go into great depth about the nature of the transactions, but it established a precedent for how the SEC views token sales, particularly those it deems unregistered securities offerings.

This settlement follows earlier arguments where La Comisión de Bolsa y Valores (SEC) de Estados Unidos admitió oficialmente que la venta de tokens de LBRY Credits (LBC) en el mercado secundario no constituted a securities offering. However, the overall outcome represents a significant win for the SEC in its ongoing efforts to regulate the crypto space.

The long-term effects of the SEC's victory against LBRY are still unfolding. It will likely shape future SEC enforcement actions against other crypto projects, and potentially influence the development of clearer regulatory guidelines for the industry.