LBRY Credits (LBC) Rally Fades
This week, LBRY credits (LBC) saw a surge in price due to reports of a favorable court case. However, traders began to give back their gains as the initial euphoria gave way to the reality that the ruling has yet to happen. As of 5 p.m. ET Wednesday, LBC was down nearly 4% in the past 24 hours and more than 16% in the last four, despite the token nearly doubling in price since Monday. This shows that investors are becoming more cautious as the court case approaches.
Judge Upholds SEC’s Ruling Against LBRY Inc.
On Monday, traders speculated that the U.S. Securities and Exchange Commission‘s (SEC) lawsuit against crypto startup LBRY Inc. had been overturned by the presiding judge. However, Judge Paul J. Barbadoro‘s ruling from November 7th still stands, confirming that LBRY Inc. had violated federal law by offering LBC as securities when it sold them in 2016. As a result, LBRY Inc. is shutting down, but the LBRY blockchain for hosting decentralized content and its utility token, LBC, remain active. This ruling serves as a reminder that the SEC is serious about enforcing securities laws in the crypto space.
Judge Barbadoro Clarifies Summary Judgment on LBC Transactions
In a followup hearing on Jan. 30, Judge Barbadoro clarified that his summary judgment did not apply to secondary transactions of LBC. Crypto lawyer John Deaton, who was in attendance to argue for the clarification, reported that the judge was disinclined to sign a permanent injunction against the sale of LBC. While the judge has not yet issued any statement codifying his intentions, the news has been welcomed by the crypto community as a sign of progress in the regulation of digital assets. The hearing transcript is not yet available, but the crypto community is hopeful that the judge‘s decision will be made public soon.
