LBRY case: SEC settles on security claim; community hails it as a major victory for crypto

The sale of LBRY Credits (LBC) tokens in the secondary market does not count as the sale of a security, the United States Securities and Exchange Commission (SEC) has publicly acknowledged. The agreement was reached on January 30 during an appeal hearing in the LBRY v. SEC case.

LBRY Hearing: The Stakes for ALL Crypto https://t.co/YPbrBkw0Od

— CryptoLaw (@CryptoLawUS) January 30, 2023

Attorney John Deaton resolved a significant point of contention at the appeal hearing, which many viewed as a victory for the whole cryptocurrency industry against the SEC’s overreaching regulation via enforcement.

On November 7, 2022, the SEC was given summary judgment in its favor. The verdict, which covered a six-year period, classified each sale of the LBC token as an investment contract without going into specifics about the transactions. The SEC hoped to make progress in its mission to legitimize the secondary market and bring it under its jurisdiction. The SEC has requested the district court judge in New Hampshire to uphold the broad, confusing injunction forbidding its sale.

Deaton sought clarification for LBC secondary market transactions because he thought the injunction was vague and overbroad as an amicus curiae representing tech journalist Naomi Brockwell. An amicus curia is a person or group that is not a party to a lawsuit but is allowed to support a court by providing data, knowledge, or insight that is relevant to the case’s issues.

Deaton highlighted a report written by commercial contract lawyer Lewis Cohen that looked at all security claims brought in the US since the SEC vs. W.J. Howey Co case. Throughout Cohen’s analysis of security cases in the United States, no court admitted that the underlying asset was security at any stage.

The judge was convinced by Deaton that LBC’s secondary market transactions weren’t securities. In an effort to avoid providing explanation for LBC, the SEC requested an order that does not distinguish between LBRY, the company’s management, and users. The judge said, turning to face Deaton:

Amicus, I’m going to make it clear that my order does not apply to secondary market sales.

Many people in the cryptocurrency community, especially holders, were relieved by the decision in the case. The SEC has filed a securities complaint against Ripple for the sale of XRP tokens. The long-running Ripple litigation may benefit from the current decision indicating that the secondary market selling of LBC tokens does not constitute as a security. A pro-XRP Twitter account claimed that the decision also qualifies XRP as a non-security.

If the SEC admitted LBRY isn’t a security then they know for sure that #XRP is definitely not a security 😁

— XRPcryptowolf (@XRPcryptowolf) January 30, 2023

That’s going to destroy the secret court action against XRP, may this force a settlement, another user speculated in response to the recent judgement in the Ripple lawsuit.

Others praised Deaton for his ongoing efforts to combat the SEC’s overreach because he has taken a leading role in the Ripple litigation.

Fight For Your Fitness (FGHT) Presale

With the use of cutting-edge Web3 and M2E (move-to-earn) technology, a new firm called Fight Out hopes to revolutionize the fitness sector. This novel strategy was developed in response to traditional gyms’ high member attrition rates, which average 50% of new members leaving within the first six months of joining. One of the main explanations for this is a lack of drive, as well as a lack of community and customization.

By providing a complete solution that includes a distinctive NFT avatar that represents the user’s fitness profile and a REPS token rewards system, Fight Out is solving these issues. These tokens, which can be used to get discounts on app subscriptions, gym memberships, personal trainer sessions, and products like supplements, exercise gear, and clothing, are earned by doing workouts, whether at home or in a facility.

The first gym is scheduled to debut in the fourth quarter of 2023. The company also has plans to establish physical gyms all over the world. These gyms will offer cutting-edge tools and services in addition to Web3-integrated elements like “mirrors” that show the user’s digital fitness profile and sensors that monitor advancement. Fight Out is positioned to take the fitness industry by storm by focusing on measurable goals, personalization, and a sense of community.

Among others, former WBO middleweight champion Savannah Marshall, UFC stars Amanda Ribas and Taila Santos, and others have joined Fight Out’s squad of ambassadors. Its unique ideas and celebrity influence have helped the FGHT token presale raise $3.76 million so far, making it one of the greatest altcoins to invest in.

Invest in Fight Out Now

Related

• SEC Sues Blockchain Startup LBRY for Selling Unregistered Securities
• White House: Crypto Regulation Drama
• NFT presales