Sec just announced a lawsuit against LBRY for “selling unregistered securities.”
SEC is classing LBRY’s LBC token as a “a security”, but by their definition, almost every crypto project would also be considered a security.
They say it’s a security because it lacks sufficient utility… I literally use LBC every day, you can’t post videos on the LBRY blockchain without it.
They also say it’s a security because the blockchain is being “actively developed”. I don’t know of any tech platform that isn’t being actively developed!
Initially the SEC was giving blockchain projects a slap on the wrist, but now they’re ramping up. LBRY inc. tried to settle with them in private for 3 years, and they refused. If the SEC wins, the LBRY network would continue to run, but LBRY inc. would effectively cease to exist.
This would affect users too! Anyone who posted videos or tipped someone on LBRY would now be guilty of “trading securities without a license.”
This lawsuit puts the whole crypto industry at risk. LBRY had best win their case.
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Naomi Brockwell @NaomiBrockwell on ODYSEE