Pro-XRP Lawyer Reacts to the SEC Revising LBRY’s Fees: ‘The SEC Is Disgrace’

The post Pro-XRP Lawyer Reacts to the SEC Revising LBRY’s Fees: ‘The SEC Is Disgrace’ appeared first on Coinpedia Fintech News

The Securities and Exchange Commission (SEC) has requested a revision of its fine against LBRY, a blockchain-based content-sharing platform. The SEC considered LBRY’s financial situation, acknowledging its inability to afford the initial $22 million penalty. 

Furthermore, due to LBRY’s lack of funds and near-defunct status, the SEC decided to withdraw its request for disgorgement, which involves forfeiting ill-gotten gains. On May 12, the SEC filed a request with the US District Court of New Hampshire to impose a reduced fine of $111,614 on LBRY.

In response to the recent developments, John Deaton, the lawyer representing XRP, expressed his view that the SEC showed a lack of concern for individual investors when it filed the lawsuit against the company. He said that despite the SEC’s lawyers acknowledging that a majority of LBRY users did not acquire an investment, the agency refused to provide clarification. Deaton expressed his disappointment by stating “Shame on you” in reference to SEC Chair Gary Gensler’s failure to protect LBRY users. 

He said, “If the SEC cared at all about individual investors and users of the LBRY platform it would have agreed to address the issue of secondary sales. Instead, the SEC refused to provide clarity although its lawyers agreed most users didn’t acquire an investment. The SEC is a disgrace.” Replying to Deaton, one of the users said, “SEC destroyed LBRY and is now stealing whatever it can. It is like robbing a dead body. I hope that judges have morals, at least.”

In March 2021, the Securities and Exchange Commission (SEC) filed a lawsuit against LBRY, alleging that the company offered LBRY Credit tokens (LBC) without proper registration as securities. LBRY CEO Jeremy Kauffman spoke regarding the potential consequences of this lawsuit, as it could establish a precedent that classifies a vast majority of cryptocurrencies as securities.