The court judge ruled in favour of the United States Securities regulatory body and declared the LBC token as an unregistered security.
The United States Securities and Exchange Commission (SEC) is a leading spot money market regulatory body, which also regulates the crypto industry dominantly. The Commodities Futures Trading Commission (CFTC) is the second leading regulatory body, which regulates those companies which operate their business on “commodity assets”.
Initially in March 2022, The US SEC agency filed a lawsuit against Crypto powered video shared Media platform LBRY and claimed that LBRY Credits (LBC) token is an unregistered security.
Through the Lawsuit, the SEC agency claimed that the company raised $11 million through the sale of LBC tokens and that was a violation of securities laws.
On 7 November, the LBRY team announced that they lost the case and the Court ruled in favor of the SEC agency. But at the same time, the company said that it will remain continuously engaged in its work to make content freedom.
Ripple vs SEC
As we know very well, the Ripple vs SEC case has been going on since December 2020. However, the Ripple company is in a better situation in this case but many people are looking at this case more related to LBRY vs SEC, which further acted as a fear among the XRP community.
However few experts say that the Ripple vs SEC case is different and the court may rule in favor of Ripple.
Initially, the SEC filed a lawsuit against Ripple company to claim that the XRP token is unregistered security and company also sold more than $1.2 Billion worth of XRP tokens against securities law.
Read also: MasterCard CEO believes we have to wait a long time to see high-level crypto adoption
Crypto platform LBRY lost its case against SEC
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