{"id":182560,"date":"2023-10-28T03:24:05","date_gmt":"2023-10-27T21:54:05","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=182560"},"modified":"2023-10-28T03:24:05","modified_gmt":"2023-10-27T21:54:05","slug":"the-market-could-have-decided-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/the-market-could-have-decided-crypto-news\/","title":{"rendered":"‘The market could have decided’ – Crypto News"},"content":{"rendered":"
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Hester Peirce of the United States Securities and Exchange Commission (SEC) has issued a dissenting opinion on the regulator\u2019s lawsuit against blockchain firm LBRY.<\/p>\n

In an Oct. 27 statement, Peirce described<\/a> feeling \u201cunsettled\u201d following the SEC\u2019s enforcement action against LBRY in March 2021. In November 2022, a judge ruled in favor of the SEC, stating that the firm\u2019s LBC token was a security. Though LBRY appealed the decision, the company announced in October that it planned to wind down<\/a>, citing millions of dollars in debt due to legal costs.<\/p>\n

\u201cThis case illustrates the arbitrariness and real-life consequences of the Commission\u2019s misguided enforcement-driven approach to crypto,\u201d said Peirce. <\/p>\n

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Some overdue thoughts on our case against LBRY: https:\/\/t.co\/wLsG4Xr7wz<\/a><\/p>\n

\u2014 Hester Peirce (@HesterPeirce) October 27, 2023<\/a><\/p><\/blockquote>\n

According to Peirce, the SEC\u2019s case against LBRY was \u201cpuzzling\u201d given there was no evidence of fraud and the firm took a conservative approach to digital assets compared to other crypto projects. The SEC commissioner suggested that there had been no clear path for a project like LBRY to come in and register with the regulator, and \u201cit would not be a particularly useful effort\u201d if it had managed to do so.<\/p>\n

\u201c[T]he Commission took an extremely hardline approach in this case,\u201d said Peirce. \u201cFor example, after winning on summary judgment, the Commission sought monetary remedies of $44 million and asserted that LBRY\u2019s offer to burn all tokens in its possession was not sufficient assurance that LBRY would not violate the registration provisions in the future. The Commission\u2019s requested remedies were entirely out of proportion to any harm.\u201d<\/p>\n

She added:<\/p>\n

\u201cThe time and resources we expended on this case could have been devoted to building a workable regulatory framework that companies like LBRY could have followed. Then the market could have decided LBRY\u2019s fate.\u201d<\/p><\/blockquote>\n

\u201cThe Commission\u2019s action forced a group of entrepreneurs to abandon what they built,\u201d said Peirce. \u201cOur disproportionate reaction in this case will dissuade people from experimenting with blockchain technology.\u201d<\/p>\n

Related: <\/em><\/strong>SEC revises $22M penalty against LBRY, seeks $111K instead<\/em><\/strong><\/a><\/p>\n

Peirce has often been a dissenting voice at the SEC in crypto-related enforcement cases. In September, she told Cointelegraph that crypto firms<\/a> shouldn\u2019t give up on trying to launch in the United States, but added she believed the commission was \u201cfar behind\u201d in finding a solution for a regulatory framework.<\/p>\n

Gary Gensler, who chairs the SEC, has often called on crypto firms<\/a> to \u201ccome in and talk\u201d to the regulator to avoid potential enforcement actions. To date, the regulator has filed lawsuits against crypto exchanges Binance and Coinbase, and many other firms in the space. <\/p>\n

Magazine: <\/em><\/strong>Crypto regulation: Does SEC Chair Gary Gensler have the final say?<\/em><\/strong><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Hester Peirce of the United States Securities and Exchange Commission (SEC) has issued a dissenting opinion on the regulator\u2019s lawsuit against blockchain firm LBRY. In an Oct. 27 statement, Peirce described feeling \u201cunsettled\u201d following the SEC\u2019s enforcement action against LBRY in March 2021. In November 2022, a judge ruled in favor of the SEC, stating […]<\/p>\n","protected":false},"author":2,"featured_media":182561,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[235,203,210,234,231,232,237,238,236,233],"class_list":["post-182560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","tag-bitcoin","tag-crypto-currency","tag-elon-musk","tag-ethereum","tag-hyperledger","tag-ibm","tag-mining","tag-nodes","tag-spacex","tag-tesla"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182560","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=182560"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182560\/revisions"}],"predecessor-version":[{"id":182563,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182560\/revisions\/182563"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/182561"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=182560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=182560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=182560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}