US Judge has just ruled in the LBRY case that LBC token is a security. SEC has won and LBRY has lost. This is a dark day for US crypto

District Judge just ruled that the LBC token is a security and not a utility token. LBC was one of the earliest tokens in the market, it was a POW mining token that had utility in the LBRY ecosystem.

In ruling it to not be a utility token but a security, this will threaten every other coin or token. LBRY had intended to grow the value of LBC token by building utility into the LBRY network. However this was judged to be a security offering. If this is the standard, then virtually every other token is also a security.

These are the statements from LBRY's founder:

The SEC vs LBRY case establishes a precedent that threatens the entire US cryptocurrency industry.

Under this standard, almost every cryptocurrency, including Ethereum and Doge, are securities.

The future of crypto now rests with an org worse than the SEC: the US Congress

Link to the court order -

https://odysee.com/@lbry:3f/secvslbrysummaryjudgementruling:a

Edit: The precedent setting examples in this one are really terrible.

Some reaction from crypto lawyers:

1. Gabriel Shapiro

it's dicta, but here the LBRY judge reasons that even if team is completely silent about efforts--no promises, no contracts--but premines tokens, that alone creates a sufficient expectation of profits from their efforts in common enterprise to pass the Howey test

very bad result

From the judgement: - -these are the worst parts

Even if LBRY never said a word about it being an investment…by retaining hundreds of millions of LBC for itself, LBRY also signaled that it was motivated to work tirelessly to improve the value of its blockchain for itself and any LBC purchasers…would lead purchasers of LBC to expect that they too would profit from their holdings of LBC as a result of LBRY’s assiduous efforts.”