On the 1st of February, after social media celebrated a significant win in LBRY’s battle with the SEC, the price of the LBRY token increased by more than 67%. According to the 1st of February report from Decrypt, founder of Crypto Law & an attorney John Deaton, the managing partner of Deaton Law Company, claimed that the judge in the case may be poised to let secondary sales of the LBRY token continue.
In March 2021, the SEC, known as the US Securities and Exchange Commission, took action against LBRY, a file-sharing and payment network. The SEC alleged that LBRY had sold unregistered security, but the company responded that its LBC token was not a security at all because it was a digital currency. In November 2022, LBRY lost this case. At that time, LBRY said that it was a risky precedent that could lead to all cryptocurrencies and digital tokens being treated as securities.
However, on the 30th of January, the whole focus turned to the question of whether secondary market sales should also be added to the request that the SEC wants the court to approve. This move would ban the sale of LBC on several crypto exchanges. At this point, John Deaton, who previously raised concerns in SEC’s case against Ripple, a crypto payments firm, appeared as a friend of the court. According to John, who is unaffiliated with LBRY, the district judge in New Hampshire overseeing the request told him that he is going to make it clear that his orders do not apply to secondary market sales. However, the transcript of the proceedings is not available, but the words from John have been enough to give hope back to LBC holders, due to which, the value of the LBRY token increased so much.