Alex Dovbnya<\/p>\n
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SEC Commissioner Hester M. Peirce, known as “Crypto Mom”, voices her strong dissent against the Commission’s action towards LBRY<\/p>\n<\/div>\n
Commissioner Hester M. Peirce, affectionately dubbed “Crypto Mom” in the digital currency community, has issued<\/a> a strong dissent against a recent enforcement action by the Securities and Exchange Commission (SEC) that resulted in the shutdown of LBRY, a blockchain company.\u00a0<\/p>\n The case, which centered around the alleged unregistered sale of LBRY tokens, has drawn significant attention due to the broader implications for the regulatory treatment of cryptocurrencies.<\/p>\n Peirce expressed her deep concern about the SEC’s approach in the LBRY<\/a> case. In her statement, she highlights the lack of clarity in the application of securities laws to cryptocurrency projects.\u00a0<\/p>\n Pointing out that the Commission chose to target a company with a functioning blockchain and real-world applications, Peirce questions why the SEC<\/a> went after LBRY instead of other projects that she perceives as outright fraudulent.\u00a0<\/p>\n The commissioner also criticizes the SEC’s initial request for a $44 million penalty against LBRY, which was later reduced to $111,614.\u00a0<\/p>\n Notably, the judge in the case also acknowledged the “measure of uncertainty” regarding the application of securities laws to LBRY’s token offering.\u00a0<\/p>\n Peirce laments the outcome, suggesting that such aggressive regulatory actions may discourage innovation and experimentation in the blockchain space.\u00a0<\/p>\n Stuart Alderoty<\/a>, Ripple’s general counsel, took to X to express gratitude to Commissioner Peirce and echo her concerns.\u00a0<\/p>\nPeirce’s statement\u00a0<\/h2>\n
Ripple’s top lawyer weighs in<\/h2>\n
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