In this episode of The Legit Ledger, Sheppard Mullin attorneys Jim Gatto and Yasamin Parsafar discuss the Court's order granting summary judgment in favor of the SEC in its case against LBRY and takeaways from the Court's order.
What We Discussed in This Episode:
- What is LBRY? What are LBRY Credits?
- What drove the SEC to file suit against LBRY?
- What key issues did the Court address in awarding summary judgment to the SEC?
- Why did its Howey Test analysis ultimately lead the Court to decide that LBRY Credits were, in fact, securities?
- Why did the Court reject LBRY's Fair Notice defense?
- Could this decision have adverse implications for the crypto industry as a whole?
- How do the issues at play in LBRY compare to those raised in the SEC's case against Ripple?
About Yasamin Parsafar
Yasamin Parsafar is a partner with the Intellectual Property Practice Group in Sheppard Mullin's San Francisco office, where she serves as co-leader of the firm's Blockchain & Fintech team. Her practice focuses on protecting her clients' intellectual property rights through counseling, prosecution, enforcement and litigation. Yasamin leverages her litigation experience to strengthen and protect her clients' intellectual property, manage risks and position businesses to succeed in the event of a dispute. She frequently advises and protects brands venturing into web3 on various issues related to non-fungible tokens, metaverses, games, online marketplaces and other platforms.
About Jim Gatto
Jim Gatto is a partner with the Intellectual Property Practice Group in Sheppard Mullin's Washington, D.C. office, where he co-leads the Blockchain & Fintech Team. His practice focuses on blockchain, interactive entertainment, digital art, AI and online gambling. He advises clients on IP strategies, development and publishing agreements, licensing and technology transaction agreements, and tech regulatory issues. Jim has been involved with blockchain since 2012 and has been recognized as a thought leader by leading organizations, including Best Lawyers in America 2021-2022; Cryptocurrency, Blockchain and Fintech Trailblazer, The National Law Journal, 2018; and Thought Leader on Blockchain & Cryptocurrencies, National Law Review, 2018.
Resources:
Federal Court Rules LBRY Offered Security and Rejects Arguments SEC Did Not Provide Fair Notice
Securities and Exchange Commission V. LBRY; Is Your Crypto Project Illegal?
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