https://open.lbry.com/@NaomiBrockwell:4/The-Most-Important-Case-in-Crypto:5
Is every single crypto transaction about to be ruled illegal?
Yesterday one of the most important hearings in crypto took place, and most people had no idea.
Basically, the SEC is suing LBRY Inc. for illegally selling securities -- They argue that LBRY credits, or LBC (the token that makes the entire decentralized LBRY ecosystem run), is a security.
Yesterday was a hearing at the US District Court in New Hampshire to determine whether there would be a summary judgment or whether the case would move to trial. But the case is bigger than almost anyone realizes, and will set the precedent for how the ENTIRE INDUSTRY is regulated.
Here is what the SEC argued in court:
It doesn't matter if 75% of purchases are for utility
It doesn't matter if the work isn't being done by seller
It doesn't matter if the seller never uses investment language
All that matters is where the token price is moves on the open market.
This would mean that basically every cryptocurrency is a security.
If the SEC wins, every person who works in the industry or has ever bought or sold crypto is guilty of trading illegal securities.
Written by Joël Valenzuela and Naomi Brockwell
Interview footage from Joël Valenzuela and John Deaton
See John Deaton's full interview with Jeremy Kauffman here:
https://odysee.com/@CryptoLawTV:9/sec-v.-lbry-summary-judgement-arguments:9?r=3Dx6nvrKP5nquHCxyvoVHLPZYfw4ZFv4
See Joël Valenzuela's response to the hearing for Digital Cash Network here:
https://odysee.com/@DigitalCashNetwork:c/LBRYcaseYTS:e?r=3Dx6nvrKP5nquHCxyvoVHLPZYfw4ZFv4
"The whole cryptocurrency industry in the USA might be at stake."
Howey Test
Would this also make a lot of Bitcoin Miners in the US illegal?
Gary Gensler said: Bitcoin is not Crypto.
Here is what I argue about the SEC:
It does not matter what the fuck some monopolized mafia called SEC wants.
same for death-cult maritine law (everyTHING is DEAD THINGS which can be negotiated) courts
LBRY obviously sold these coins, and kept a big chunk for themselves, in order to finance their company, before the current utility existed. That's why utility doesn't matter here, it's not a get-out-of-jail card.
I warned people in advance not to trust these grifters. Just like Ripple, they're trying to get all of crypto to defend them, while they're responsible for giving the SEC an easy precedent.