The SEC commissioner said the regulator’s actions “forced a group of entrepreneurs to abandon what they built,” with LBRY announcing in October it planned to wind down operations.Hester Peirce of the United States Securities and Exchange Commission has issued a dissenting opinion on the regulator’s lawsuit against blockchain firm LBRY.feeling “unsettled” following the SEC’s enforcement action against LBRY in March 2021.
“he Commission took an extremely hardline approach in this case,” said Peirce. “For example, after winning on summary judgment, the Commission sought monetary remedies of $44 million and asserted that LBRY’s offer to burn all tokens in its possession was not sufficient assurance that LBRY would not violate the registration provisions in the future. The Commission’s requested remedies were entirely out of proportion to any harm.
“The Commission’s action forced a group of entrepreneurs to abandon what they built,” said Peirce. “Our disproportionate reaction in this case will dissuade people from experimenting with blockchain technology.”shouldn’t give up on trying to launch in the United States, but added she believed the commission was “far behind” in finding a solution for a regulatory framework.to “come in and talk” to the regulator to avoid potential enforcement actions.