Bulletpoints:
• The United States Securities and Exchange Commission (SEC) admitted on record that the sale of LBRY Credits (LBC) tokens in the secondary market doesn’t constitute a security.
• The settlement came during an appeal hearing in the LBRY vs. SEC case on Jan. 30.
• Attorney John Deaton represented tech journalist Naomi Brockwell as an amicus curiae, sought clarity for LBC secondary market transactions because he found the injunction ambiguous and broad.

The United States Securities and Exchange Commission (SEC) recently admitted on record that the sale of LBRY Credits (LBC) tokens in the secondary market does not constitute a security. This came after an appeal hearing in the LBRY vs. SEC case on Jan. 30. The SEC had initially won a summary judgment in its favor during the Nov. 7, 2022 hearing, which categorized each sale of the LBC token during a six-year period as an investment contract without going into detail about the transactions’ specifics. The SEC had sought to gain legitimacy in the secondary market and bring it under its purview as well, and had asked the New Hampshire district court judge to affirm the wide, ambiguous injunction prohibiting its sale.

Attorney John Deaton represented tech journalist Naomi Brockwell as an amicus curiae in the case, and sought clarity for LBC secondary market transactions because he found the injunction to be ambiguous and broad. Deaton argued that the SEC’s injunction should be specific to the direct sale and that it should not be applicable to the secondary market transactions. The settlement of the case was seen as a big win for the entire crypto industry, as it prevented the SEC from overreaching its regulatory authority.

The case is also seen as a positive development for the LBRY community, as the settlement has provided them with some much-needed regulatory certainty regarding their token. This could potentially open up more investment opportunities for the project, as the SEC’s stance on the issue is now clear.

For the crypto industry at large, the case serves as a reminder of the importance of staying compliant with the regulatory authorities. The SEC has made it clear that they will not hesitate to take action against those who violate their regulations, and this case serves as an example of this. It is therefore important for all crypto projects to ensure that they are in compliance with all applicable laws and regulations.