Federal Court Rules LBRY Offered Security And Rejects Arguments SEC Did Not Provide Fair Notice

We have previously posted about the SEC lawsuit against LBRY. In that post, we noted that while the crypto community is rightfully focused on the Ripple case to see how the SEC will fare in court on enforcements alleging cryptocurrency offerings are a security, a lesser-known case may provide clarity first. And today that came to be. The federal district court in the LBRY case granted summary judgment in favor of the SEC. In so ruling, the Court found no reasonable trier of fact could reject the SEC's contention that LBRY offered LBC as a security, and LBRY does not have a triable defense that it lacked fair notice.

As we also noted, the SEC will undoubtedly seek to use this decision in its case against Ripple. One of Ripple's arguments against the SEC is that the SEC did not give it fair notice that its sale of LBC was subject to securities laws, thus violating the company's right to due process. Ripple is making a similar argument. While each case turns on its