US. Securities and Trade Fee (SEC) commissioner Hester Peirce has voiced issues over the regulator’s lawsuit towards blockchain firm LBRY.
Early this yr, SEC filed a lawsuit towards LBRY, alleging that the corporate’s digital token, LBC, must be labeled as a safety.
Nevertheless, the authorized battle reached its conclusion in November 2022 when a decide dominated in favor of the SEC.
In consequence, LBRY just lately announced its plans to shut down resulting from substantial authorized bills
In an announcement on October 27, Peirce criticized the SEC’s strategy, deeming it misguided, particularly within the absence of any proof supporting allegations of fraudulent actions by LBRY.
Peirce additionally noticed that LBRY had exercised extra warning in managing digital belongings in comparison with many different cryptocurrency tasks.
Moreover, she raised questions concerning the SEC’s place on regulating the cryptocurrency business, and criticized SEC for not providing clear steering that might have facilitated correct registration for firms like LBRY.
Peirce argued that even when LBRY had efficiently registered with the SEC, it will not have been a productive endeavor.
The commissioner additional expressed her issues concerning the SEC’s aggressive pursuit of considerable financial penalties, amounting to $44 million, and their assertion that LBRY’s proposal to burn all its tokens was inadequate as an assurance of future compliance with registration rules.
““The time and sources we expended on this case may have been dedicated to constructing a workable regulatory framework that firms like LBRY may have adopted. Then the market may have determined LBRY’s destiny.” she stated “The Fee’s motion pressured a bunch of entrepreneurs to desert what they constructed.`
Additionally learn: FTX and Alameda Transfer $14.4M in Tokens to Repay Creditors
Hester Peirce Voices Concern Over SEC’s Lawsuit Against LBRY www.cryptotimes.io 2023-10-28 16:19:44
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