under this test, the ruling varies depending on the characteristics of a token, which are subject to change.
“The court did not cite any legal precedents for this opinion, perhaps because there are none,” Daugherty said. Beyond the financial cost of the trial, the biggest consequence of the ruling is the slowed adoption of LBC tokens, Kauffman says.“Perhaps worse of all, [we’ve] faced substantial difficulty in adoption from third-party parties like exchanges that are terrified of the SEC,” he stated.
Kauffman didn’t hide his frustration with the result of the SEC complaint, blaming the company’s ultimate fate on the government's lack of transparency. Daugherty told Cointelegraph that it’s important to take this argument in the proper context, as the LBRY case was active since 2016. Daugherty said that his advice for companies and projects in the blockchain industry is to hold LBRY as an example for their legal strategy.