The judge's spectacular turnabout in the LBRY vs. SEC case

Crypto firm LBRY has been embroiled in a lawsuit against the SEC for the past few months. At issue is the determination of the moveable nature of LBRY Credits (LBC), the company’s native crypto. The legal battle over the latter has just seen a new twist.

The judge changes his mind on the movable nature of LBRY Credits (LBC)

A new twist in the legal battle between crypto firm LBRY and the SEC. Judge Paul Barbadoro of the U.S. District Court for the District of New Hampshire has refused to take a position on the case. The magistrate would not say whether the sale of LBRY Credits (LBC) on a secondary market was a moveable security or not.

It has to be said that Judge Barbadoro’s opinion represents a break with his previous position on the matter. At a hearing in January, the magistrate had argued that LBC should not be considered a security.

Bad news for #Ripple ? LBRY judge passes ruling on if secondary crypto sales are securities https://t.co/DiXDKyDcdP

— BLAH BLAH 🤙🏻 (@BLAH9999999) July 12, 2023

If this were the case, the sale of LBCs would have to be carried out directly on the primary market. And the nuance is important. Unlike the primary market, sales on the secondary market involve the buying and selling of securities between traders.

Be that as it may, Judge Paul Barbadoro’s change of heart is not without consequence. The stakes of this decision are particularly high when put into perspective with Ripple’s lawsuit against the SEC.

Couldn’t this development be seen as bad news for crypto firm Ripple? Judge Analisa Torres is expected to rule on the case shortly. But some fear that Judge Paul Barbadoro’s change of position could set a precedent influencing her decision. To be continued.