Mati Greenspan has warned that SEC’s recent action against LBRY can threaten all cryptocurrency’s future. The Quantum Economics founder has sounded it as a note of alarm about the harm the SEC’s case against the LBRY can do to cryptocurrency.
Mati Greenspan, the Quantum Economics founder, has warned that the SEC’s recent activity against the decentralized content project, LBRY, can threaten all crypto’s future. Based on SEC’s filed complaint in March 2021, LBRY is said to offer and sold unregistered securities worth millions through LBRY tokens since 2016. However, the firm has already disputed the SEC’s claims. LBRY maintained that their tokens aren’t for speculation but utility-focused.
How SEC’s case against LBRY can threaten crypto future
Meanwhile, Greenspan insisted in today’s newsletter that when the SEC’s file against LBRY became successful, it would cause dramatic effects. He said in the newsletter that if the court rule against LBRY, the future of all crypto, including Bitcoin and Ethereum, would be in danger. Greenspan further maintained that the United States has already fallen behind in cryptocurrency regulations. For Greenspan, this case can create a classifying precedent.
In continuation, Greenspan believes that judges mostly take guidance from last rulings on related cases; thus, a negative judgment can make it simpler to kill projects that use crypto tokens, like NFTs (Non-fungible tokens), DeFi, and smart contracts, apart from stable-coins possibly. Greenspan thinks that the only crime of the platform is that it was created in the US. This court case shows the United States’ backward measure to forward innovations.
Analyst believes SEC would stiffle the crypto sector growth if they win
In another sense, an Israeli-based commentator said he doesn’t believe an SEC victory will harm crypto innovations or hurt the crypto industry generally. But it might do so in the United States. It would just drive it off from the US. Projects such as this flourish in parts of Asia and Europe. While the technology continues progressing worldwide, the US is left behind.
As stated, LBRY, while contesting the SEC case, argued the SEC allegations that credits aren’t helpful apart from the speculation. The credits permit users to publish, tip, buy and boost content with the platform, and the firm didn’t indicate that LBRY credits are an investment and have constantly discouraged buying credits for this aim.
What’s more, Greenspan has asked his newsletter readers to write letters to the US congress to show LBRY support or visithelplbrysavecrypto.com for more insight on the American regulator’s idiotic actions. Despite his alarm bells on the possible negative case outcome, Greenspan has said he is hopeful. He said that he is optimistic that the judge can see blatant holes in the SEC’s case. For Greenspan, LBRY has some sound arguments to win this through.