The judge presiding over the case between LBRY and the U.S. Securities and Exchange Commission (SEC) has refused to rule on whether the secondary sales of LBRY Credits (LBC) are securities transactions. The SEC filed a lawsuit against LBRY in March 2021, alleging that the blockchain-based content platform violated securities laws by selling LBC tokens to fund its operations. LBRY argues that LBC are not securities, but utility tokens that are used to access and publish content on its network. The judge said that the question of whether LBCs are securities is a factual issue that cannot be decided at this stage of the litigation, and that both parties should proceed with discovery. The judge also denied LBRY’s motion to dismiss the SEC’s claims based on the statute of limitations, saying that the SEC has sufficiently alleged that LBRY’s conduct was fraudulent and concealed from the public. The case is expected to go to trial in 2023.