On July 11, Pauls J. Barbadoro, a US District Judge, issued a judgment against LBRY in just one of the over 150 cases brought against crypto entities by the Securities and Exchange Commission (SEC).
Pauls J. Barbadoro issued a judgment against LBRY in the suit brought against the crypto entity by the Securities and Exchange Commission. The judge ruled that the entity should pay civil penalties of $111,614 for selling unregistered securities.
The ruling by the U.S. federal judge was a blow to the crypto defenses of “SEC regulation by enforcement” and “SEC lack of regulatory clarity.”
Ruling highlights the importance of crypto regulation and transparency
This was highlighted by John Reed Stark, a former Chief, SEC Office of Internet Enforcement, in a Twitter post on July 12.
According to Stark, the crypto community and sympathizers keyed into the two mantras to seek the sympathy of libertarians and anti-regulatory mores.
Stark said that the ruling highlights the importance of crypto regulation and transparency in fostering legitimate technological innovation and financial development.
Argument for regulatory clarity as baseless
He maintains that the arguments for “regulatory clarity” and criticisms of the SEC by crypto proponents are baseless and do not hold up under scrutiny. To him, the judge’s decision is a clear signal that the SEC will not tolerate unregistered offerings of crypto assets. This ruling is a victory for investors and a setback for the crypto industry.
He inferred that it is time for the crypto industry to acknowledge its failures and work with regulators to develop a more compliant and transparent industry. The truth is that crypto is not a panacea and operates as a hustle. It is time for the crypto industry to grow up and start acting like a responsible member of the financial community.
Big names in the crypto industry, like Binance and Coinbase, are also facing lawsuits by the SEC. The outcome of these cases will determine how much power the SEC, which has yet to lose a lawsuit against a crypto entity, will wield over the crypto community.