LBRY Token Ruling Gives SEC Ammunition in Crypto Enforcement

A federal judge’s decision that LBRY Inc.’s digital token sales violated US securities law gives the SEC momentum in policing the burgeoning market and emboldens regulators to push the boundaries.

A New Hampshire federal court this week sided with the Securities and Exchange Commission’s argument that LBRY should have registered its “LBRY Credits” with the agency before selling them because they are securities.

Whether a crypto asset is a securities product, under the SEC’s oversight, is an ongoing debate, although the agency believes many digital assets have the hallmark of a security. The Nov. 7 ruling is among a handful ...