SEC commissioner slams SEC’s approach on LBRY Case
Hester Pierce slammed the SEC body for its puzzling approach in the Lbry blockchain firm case.
Hester Pierce is pro crypto commissioner at the United States Securities and Exchange Commission (SEC). She is known for her pro-crypto statements and crypto proponents called her CryptoMom.
On 27 Oct 2023, Hester Pierce shared her opinion on the SEC vs LBRY case and said that she was never in support of the SEC agency against Lbry firm because Lbry’s crypto-related business activities were not suspicious or illegal and also SEC’s blind suit action was not a fair decision.
The pro-crypto SEC commissioner also said that there are no rules for such crypto firms, so how ethically was it not possible for Lbry to register with the SEC or get regulatory approval to operate a crypto business?
Furthermore, Hester noted that the SEC’s $44 million fine against Lbry, after the victory in the court, was a bad move. However, later the SEC revised its penalty request to $111,614.
Hester suggested the SEC body should design some Protocols for such crypto firms so that Blockchain firms can run their business activities under rules & laws without facing such unfair enforcement actions.
LBRY downfall
LBRY was a blockchain-based file-sharing and payment network that powers decentralised platforms, primarily social networks, and video platforms.
The blockchain firm behind this project was in the initial phase of growth but faced the SEC’s enforcement action and later lost the case in court.
The Lbry officials were planning to appeal against the court ruling but later revoked their plan. A few months before, Lbry decided to wind down its business.
After the victory of the SEC body in the Lbry case, the majority of the people were considering that San Francisco’s headquartered blockchain firm Ripple (XRP) might lose the case against the SEC but, in the end Ripple secured victory against the SEC.
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