LBRY Exposes SEC’s Double Standards Over Securities Law For Crypto

Crypto Market News: In the wake of the U.S. Securities and Exchange Commission’s (SEC) decision to revise the penalty on LBRY, the crypto startup commented on the agency’s dual narrative around LBR being a security. In recent court filings, the US SEC cited LBRY’s “inability to pay” the $22 million penalty as the reason behind revising it to $111,614. In fact, the Commission stated LBRY lacked funds and that it was in a near defunct status. The penalty was levied as part of the lawsuit filed by the SEC over the sale of LBRY’s LBC alleged violation of the US securities laws.

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Meanwhile, LBRY responded to the SEC’s emphasis on LBC being a security. The company referred to the SEC’s comments about its staff statements on the securities law.

LBRY Refers To SEC’s Coinbase Filing

In a recent development, the SEC asked the judge to deny Coinbase’s request to compel the agency to respond to a rulemaking petition. The request essentially sought clarity about how securities laws apply to the crypto market. Gary Gensler, the SEC Chair, has been facing criticism for his stance that a majority of the crypto assets are securities as per existing rules. However, the SEC denied the request to clarify about the same. LBRY’s latest statement is targeted at the same dual approach by the SEC:

“The SEC repeatedly cited a single sentence from an unpaid volunteer moderator in our community chat as evidence that LBC was a security.

Meanwhile, the SEC argues in Coinbase filing that even statements from senior staff of the SEC about securities law don’t mean anything.”

Meanwhile, Gensler has also been facing the heat from lawmakers over the lack of clarity in the crypto market.

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