SEC Commissioner Hester Peirce Challenges SEC’s Actions in LBRY Case
Hester Peirce, a commissioner at the Securities and Exchange Commission (SEC), has expressed her strong disapproval of the agency’s handling of charges against cryptocurrency startup LBRY.
In a statement released on Friday, Peirce, known for her favorable stance towards the crypto industry, argued that the SEC’s claims of clear application of securities laws to token projects are unfounded.
Contrary to the agency’s assertions, Peirce claimed that there is currently no viable avenue for companies like LBRY to register their functional token offerings with the SEC.
Moreover, she emphasized that even if registration were possible, it would be an exercise of little practical value.
“Even if a company did manage to register its token offering, it would not be a particularly useful effort.”
Peirce underlined the importance of compliance for investor protection but highlighted the lack of feasible options available to token projects seeking regulatory approval.
Peirce’s comments come in the wake of recent announcement from LBRY, which revealed that the company would be shutting down.
The decision follows years of legal conflict with the SEC, which initially charged LBRY with selling unregistered securities and alleged that the firm had raised over $11 million in U.S. dollars, Bitcoin, and services during its token offering.
Expressing her frustration, Peirce revealed that she did not support the SEC’s decision to pursue the case against LBRY but had been unable to publicly voice her concerns while the litigation was ongoing.
LBRY had previously appealed the judge’s ruling that deemed its token subject to regulatory oversight and ordered the company to pay over $111,614. However, the company later abandoned its appeal.
In light of the
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