![\"Stop](\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2023\/10\/checkin-cryptoslate-600x500-d-1.jpg\")
<\/a><\/div>\nHester Peirce<\/a>, a commissioner for the U.S. Securities and Exchange Commission (SEC), dissented from the agency\u2019s case against LBRY on Oct. 27<\/a>.<\/p>\n LBRY Inc., the firm behind the LBRY blockchain and content-sharing network, announced on Oct. 19<\/a> that it would not appeal its loss in the case, marking a formal end of proceedings. The firm will instead shut down and enter receivership in order to pay millions of dollars of debts to various parties, including the SEC.<\/p>\n Peirce questioned the value of this outcome, writing:<\/p>\n \u201cAre investors and the market really better off now after the Commission\u2019s litigation contributed to the demise of a company that had built a functioning blockchain with a real-world application running on top of it?\u201d<\/p>\n<\/blockquote>\n She added that the case \u201cillustrates the arbitrariness and real-life consequences\u201d of the SEC\u2019s regulation by enforcement approach toward the crypto sector.<\/p>\n Importantly, Peirce emphasized that the SEC did not allege that LBRY committed fraud. She noted that, unlike many other projects, LBRY did not fail to meet its promises. Instead, Peirce said, the project had a functional blockchain during most of its token sales, and its content-sharing platform was not only operational but popular.<\/p>\n Peirce added that the SEC took an \u201cextremely hardline\u201d approach: it sought $44 million in penalties, demanded LBRY burn all tokens in possession, and said that these remedies alone would not ensure that LBRY would not violate registration rules in the future. The agency eventually reduced its penalty request<\/a> to $111,614, she noted.<\/p>\n Peirce also argued against her agency\u2019s broader stance on regulation, stating:<\/p>\n \u201cThe application of the securities laws to token projects is not clear, despite the Commission\u2019s continuous protestations to the contrary. There is no path for a company like LBRY to come in and register its functional token offering.\u201d<\/p>\n<\/blockquote>\n Peirce added that the SEC\u2019s \u201cscorched earth\u201d tactics in the case at hand were disproportionate compared to any possible harm that investors may have faced. She said that the time and resources that her agency spent on the LBRY case could have instead been spent on creating a regulatory framework for projects to adhere to. She warned that the SEC\u2019s severe reaction will prevent future blockchain experiments.<\/p>\n Yet she observed that the judge did not rule on the security status of the LBRY token itself (LBC<\/a>) or secondary sales of LBRY, which may allow the blockchain to continue.<\/p>\n Peirce added that she had been opposed to the case from the start but was unable to comment on the case as it was pending.<\/p>\n Hester Peirce, a commissioner for the U.S. Securities and Exchange Commission (SEC), dissented from the agency\u2019s case against LBRY on Oct. 27. LBRY Inc., the firm behind the LBRY blockchain and content-sharing network, announced on Oct. 19 that it would not appeal its loss in the case, marking a formal end of proceedings. The firm […]<\/p>\n","protected":false},"author":2,"featured_media":182591,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-182590","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182590","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=182590"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182590\/revisions"}],"predecessor-version":[{"id":182593,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/182590\/revisions\/182593"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/182591"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=182590"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=182590"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=182590"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Peirce criticizes SEC\u2019s entire approach<\/h2>\n
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