SEC's Hester Peirce Criticizes U.S. SEC's LRBY Case Decision
The SEC fined crypto company LBRY, but SEC member Hester Peirce says the decision is too harsh and urges clearer rules for crypto businesses.
The U.S. Securities and Exchange Commission (SEC) had issues with a crypto company called LBRY. In 2021, the SEC said LBRY's LBC token was like selling illegal shares. In 2022, the court agreed with the SEC, and LBRY had to pay money.
Now, LBRY doesn't want to fight in court anymore. They said they will stop their business because they owe money to the SEC and other people.
Hester Peirce, a member of the SEC, doesn't agree with this decision. She said the SEC’s actions against LBRY were “unsettling”. She was surprised because LBRY didn't do any fraud. In fact, she believes LBRY was more careful than other crypto companies. She also said the SEC's fine for LBRY was too much.
Peirce thinks the SEC should make clear rules for crypto. Right now, crypto companies don't know how to work with the SEC. Instead of suing LBRY, the SEC should have made a clear rule for crypto companies to follow. Peirce said the SEC should help companies understand the rules better.
