Thread by @tokenmetricsinc

SEC wins suit (similar to $XRP) against LBRY

@LBRYcom, the background, and what it means for crypto 🧵

Decentralized projects are often seen as a threat by central authorities because they represent a challenge to the way that things have always been done.

In recent years, we have seen a number of crackdowns on decentralized projects by government agencies around the world in an attempt to maintain control over the population.

Today, another decentralized project bites the dust.

Decentralized video streaming platform LBRY has lost a court case against the Securities and Exchange Commission.

The SEC argued that LBRY's sale of its $LBC tokens was an unregistered sale of securities, and the court agreed.

LBRY, on the other hand, maintains that $LBC functions as a digital currency that is an essential component for the working of the platform.

A similar argument has been made by #Ripple Labs. The company believes that its native token $XRP is not a security.

Several major players in the crypto industry, including Coinbase and the Blockchain Association, have come forward to support @Ripple #XRP, alleging that the regulator's securities laws have been applied inconsistently, creating "uncertainty" for everyone.

In response to the ruling, LRBY wrote on Twitter, "The language used here sets an extraordinarily dangerous precedent that makes every cryptocurrency in the US a security, including #Ethereum." $ETH

https://twitter.com/LBRYcom/status/1589646941465763840

This is a big win for the SEC, and a big loss for the LBRY project.

While it is not clear what the implications will be for other cryptocurrency projects, the SEC will likely take a closer look at them in the future.