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- The US SEC has accepted that LBRY Credits (LBC) tokens are not securities.
- The LBC token soared to a daily high of $0.03225 after the news.
- At press time, the token is trading at $0.0278.
LBRY Credit Price (LBC) jumped more than 90% today after the US Securities and Exchange Commission (SEC) accepted that the token is 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 consumers and producers.
Library Credit has been in a long battle with the US SEC and on Monday, a New Hampshire district court judge ruled that transactions of LBC tokens on the secondary market are not securities.
What is the problem between SEC and LBRY?
The US SEC took action against Library Credit in March 2021 accusing it of selling unregistered securities. Library Credit maintains that its token, LBC, is not a security but a digital currency.
In November last year, the case was won by the SEC and Library Credit cited the decision as a “dangerous precedent” that could see all cryptocurrencies declared securities.
Credit Libraries went ahead and filed an appeal, which was heard on Monday (January 30, 2023) with a focus on whether a secondary market sale of LBC tokens should be included in an order requested by the US SEC for approval by the court. If the order is approved, it will prevent the sale of LBC tokens.
John Deaton, an attorney who previously raised issues in the XRP case, appeared as amicus curie in the LBC case. He pushed for the court to clarify who would be protected by the judgment the SEC is seeking a ruling on.
Victory for the crypto industry
The new ruling comes as a reprieve for the crypto industry which has faced many similar cases with Ripple versus US SEC being one of the most closely followed.
Following the turn of events, the XRP community is expecting a similarly favorable outcome in its own case against the SEC.
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https://coinjournal.net/news/lbry-credits-lbc-shoots-up-by-90-after-being-declared-not-a-security/
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