Crypto firm LBRY has been embroiled in a lawsuit against the SEC for a few months. In question, the determination of the movable nature of LBRY Credits (LBC), the native crypto of the company. The legal battle around the latter has just experienced a new turnaround.
Judge changes opinion on movable nature LBRY Credits (LBC)
New twist in the lawsuit between the crypto firm LBRY and the SEC. New Hampshire District Court Judge Paul Barbadoro declined to take a position on the case. The magistrate does not want to say whether the sale of LBRY Credits (LBC) on a secondary market is movable or not.
I have to say that Judge Barbadoro’s opinion constitutes a break from its previous position on the matter. During a hearing in January, the magistrate had supported the idea that LBC should not be considered as a title.
If this were to be the case, the sale of LBC would then have to be made directly on the primary market. And the nuance is important. Because, unlike the primary market, selling on the secondary market involves the buying and selling of securities between traders.
Be that as it may, Judge Paul Barbadoro’s change of heart is not without consequence. The stakes of this decision are particularly questionable when put into perspective with Ripple’s lawsuit against the SEC.
Couldn’t this development be considered bad news for the crypto firm Ripple? Judge Analisa Torres is expected to render her decision in this case soon. But some fear that the change in position of Judge Paul Barbadoro is a precedent influencing his decision. Case to follow.
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