The price of LBRY Credits (LBC) surged by over 90% earlier today after the US Securities and Exchange Commission (SEC) accepted that the token was not a security. LBC is the native token of Library Credit, a platform that seeks to simplify the way digital content is distributed and accessed by both consumers and producers.
Library Credit has had a long battle with the US SEC and on Monday, a New Hampshire district court judge ruled that LBC token transactions on the secondary market were not securities.
What was the issue between SEC and LBRY?
The US SEC took action against Library Credit in March 2021 accusing it of selling an unregistered security. Library Credit maintained that its token, the LBC, was not a security but rather a digital currency.
In November last year, the case was won by the SEC and Library Credit cited the ruling then as a “dangerous precedent” that could make all cryptocurrencies to be terms as securities.
Library Credit went ahead and filed an appeal, which was heard on Monday (January 30, 2023) with a focus on whether the secondary market sales of the LBC tokens should be included in an injunction the US SEC is seeking the court to approve. If the injunction was to be approved, it would prevent the sale of LBC tokens.
John Deaton, a lawyer who has previously raised issues with the XRP case, appeared as an amicus curie in the LBC case. He was pushing to have the court clarify who would be covered by the injunction that the SEC was seeking determination.
A win for the crypto industry
The new ruling comes as a reprieve for the crypto industry which has faced many similar cases with Ripple versus the US SEC being one of the most followed.
Following the turn of events, the XRP community is hoping for a similarly favourable outcome in its own case against the SEC.
