Hester “Crypto Mom” Peirce, the SEC commissioner who’s been the crypto community’s voice of reason, finally broke her silence on the SEC vs. LBRY case. And let’s just say she’s not sending the SEC a Christmas card this year. 🤯
Peirce is flabbergasted, to put it mildly. She questions whether the SEC’s “scorched earth” approach against LBRY benefits investors or the market. In her words, the SEC’s action “contributed to the demise of a company that had built a functioning blockchain with a real-world application.” Ouch.
LBRY wasn’t some fly-by-night operation; it was a legitimate project that aimed to empower content creators and resist censorship. No fraud, no smoke and mirrors, just a blockchain doing blockchain things. So why, Peirce wonders, did the SEC go after LBRY like a cat on a laser pointer when there are plenty of fraudulent projects out there?
And let’s talk penalties. The SEC initially wanted a jaw-dropping $44 million from LBRY. Even Judge Judy would raise an eyebrow at that. Eventually, they settled for a more “reasonable” $111,614, but the damage was done. LBRY is shutting down, and its assets are going into receivership. 🤦♀️
Peirce also calls out the SEC’s murky guidelines on token projects. She argues that the Commission should’ve spent its time creating a “workable regulatory framework” instead of playing crypto whack-a-mole.
Peirce warns that the SEC’s heavy-handedness will deter entrepreneurs from experimenting with blockchain technology. She even quotes LBRY’s tweet envisioning a dystopian 2028 where using crypto could land you in jail, and Peirce is still penning dissents.
Peirce urges the public to help the SEC “right its course on crypto and innovation.” 🥲