Another "Ripple case" Threatens the Entire Cryptosphere
The US Securities and Exchange Commission (SEC) threatens the future of cryptocurrencies, according to analyst and founder of Quantum Economics Mati Greenspan.
In his opinion, the US authorities will soon be able to liquidate any project related to cryptocurrencies.
In late March, the SEC filed a lawsuit against the decentralized content publishing platform LBRY. The regulator accused the blockchain startup of selling unregistered securities in the form of LBRY Credit tokens.
According to the document, since July 2016, LBRY has offered digital assets to "numerous investors", including US citizens. During this time, the startup team, according to the SEC, raised about $11 million in US dollars and Bitcoins.
LBRY is a content distribution platform where users themselves determine the fees and conditions under which they are willing to share their content, using blockchain technology and the Bittorrent protocol.
If the court sides with the SEC, it will be an extremely unfavorable precedent for the cryptocurrency industry, Greenspan believes. In his opinion, this situation can create a precedent that will allow you to classify any digital currencies as securities. The danger to the industry was also stated by the crypto lawyer Jeremy Hogan.
Judges are usually guided by previous decisions in similar cases, so a negative decision in the case against LBRY will allow you to "kill" any similar project.
The analyst stressed that the regulation of the cryptocurrency industry in the United States lags far behind other countries. The mistake of LBRY management is only that they chose the United States to launch their startup.
However, Greenspan himself hopes for a successful outcome of the case: "Let's hope that the judge will see the gaping holes in the SEC statements. LBRY's lawyers have very strong arguments, so I'm pretty optimistic in this case."
Recall that in December 2020, the SEC accused Ripple of selling unregistered securities in the form of XRP tokens.