February 5, 2023

LBRY Inc may close due to lost SEC litigation

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1 min.

LBRY Inc may close due to lost SEC litigation

The company LBRY, which developed the decentralized platform of the same name, said that it will most likely have to close, as the case against the US Securities and Exchange Commission (SEC) is lost.

Earlier this month, an American court ruled inin favor of the SEC by recognizing the sale of LBRY tokens as an unregistered sale of securities. The company said that the core protocol and blockchain continue to work, but this may not last very long and the company will “die” in the near future. LBRY hopes that it will be able to continue to pursue its goals, but not in its current form.

The platform is called "blockchain-basedYouTube, whose hosted content policy is not as strict. LBRY is offering content creators its own LBRY Credits (LBC) tokens, as opposed to a YouTube partnership agreement that allows creators to earn money from ads.

The SEC, in its lawsuit against LBRY, argued thatthe LBC token was created purely for speculation, with the crypto company claiming that the tokens are needed for key platform functions such as buying and promoting videos, tipping, and posting content.

LBRY noted that despite all the statements of the Commission, it is still difficult to negotiate with the SEC - the company offered the SEC to comply with any of its conditions, but the regulator refused.

Earlier, the SEC published a strategic plan for fiscal years 2022-2026, according to which one of the priorities will be the development of a regulatory framework for the crypto industry.