Crypto News: SEC Commissioner Hester Peirce Speaks Up About the LBRY Case

Bob Mason
Published: Oct 28, 2023, 04:38 GMT+00:00

BTC and ETH ended the Friday session in the red, with the euphoria surrounding BTC-spot ETFs subsiding. The WSJ article and LBRY were topics of discussion.

Crypto News

In this article:

Key Insights:

  • BTC declined for a second consecutive session, on Friday, with ETH also losing ground.
  • The Wall Street Journal article on Hamas and crypto drew scrutiny.
  • Commissioner Hester Peirce issued an overdue statement of dissent on the SEC v LBRY case.

SEC Commissioner Hester Peirce Dissents on LBRY

On Friday, SEC Commissioner Hester Peirce shared her thoughts about the SEC vs. LBRY case.

In a lengthy ‘Overdue: Statement of Dissent on LBRY,’ Peirce stated,

“The application of the securities laws to token projects Is not clear, despite the Commission’s continuous protestations to the contrary. There is no path for a company like LBRY to come in and register its functional token offering.”

Peirce added,

“The time and resources we expended on this case could have been devoted to building a workable regulatory framework that companies like LBRY could have followed. Then the market could have decided LBRY’s fate.”

On October 20, announced it was winding down.

The crypto community responded to the comments. Ripple Chief Legal Office Stuart Alderoty, said,

“Thank you, Commissioner. When you see injustices like this continue in non-fraud cases (while consumers wait for recourse from actual frauds) perhaps it’s time to let ordinary rules of protocol go by the wayside and speak out louder and sooner? Perhaps even with an amicus brief?”

CryptoLaw founder and Amicus Curiae attorney John E. Deaton said,

“Any Commissioner who voted to sue LBRY should be ashamed of themselves. But not just the Commissioners. SEC enforcement lawyers who threatened to ‘bankrupt’ LBRY and Jeremy Kauffman during the investigative stage, by running up defense costs and legal fees, are an absolute disgrace.”

Deaton added,

“My client Naomi Brockwell NEVER purchased or sold a single LBC token. She didn’t even meet the FIRST Howey factor, let alone the other factors, yet the SEC refused to provide No Action letters, or guidance, making it clear that secondary market users were not subject to SEC jurisdiction.”

Former CEO of Jeremy Kauffman, responded to Hester Peirce, saying,

“My impression is Peirce is doing her best under circumstances and political challenges I can’t fathom. I’ve attacked her before but only because she’s the only one human to care enough. This is a thoughtful note that I’m appreciative of.”

Elliptic Puts the Record Straight on Hamas and Crypto Crowdfunding

On October 25, Elliptic issued a statement, setting the record straight on crypto crowdfunding by Hamas. Elliptic said,

“Over the past two weeks, politicians and journalists have portrayed public crypto fundraising as a significant source of funds for Hamas and other terrorist groups, but the data simply does no support this. No public crypto fundraising campaign by a terrorist group has received significant levels of donations, relative to other funding sources.”

Elliptic referenced the Wall Street Journal article titled Hamas Militants Behind Israel Attack Raised Millions in Crypto. The bipartisan letter, calling on the US Administration to deal with firms supporting the use of crypto for illicit means also got a mention.

Elliptic concluded,

“Terrorist groups do make use of cryptoassets for public fundraising, but the amounts involved are tiny relative to other funding sources.”

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC move through the $35,265 resistance level would give the bulls a run at the $36,400 resistance level. SEC approval of BTC-spot ETF applications would support a return to $35,000.

A BTC return to $33,500 would support a move to the $32,436 support level.

The 14-Daily RSI reading of 80.86 shows BTC in overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 281023 Daily Chart

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs, affirming bullish price signals. An ETH break above the $1,805 resistance level would give the bulls a run at the trend line.

Updates from the ongoing SEC cases against Binance, Coinbase (COIN), and Ripple and ETH-spot ETH-related news would influence investor sentiment.

However, an ETH break below the $1,741 support level would give the bears a run at the 200-day EMA.

ETH sits on the border of overbought territory with a 14-Daily RSI reading of 69.77.

ETH Daily Chart sends bullish price signals.
ETHUSD 281023 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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