Mati Greenspan, an analyst and founder of Quantum Economics, believes the recent complaint by the US Securities and Exchange Commission (SEC) against the startup LBRY could threaten the entire cryptocurrency industry.
At the end of March, the SEC filed a lawsuit against cryptocurrency startup LBRY, accusing the company’s management of selling tokens, which are unregistered securities. Mati Greenspan believes that if the court takes the side of the SEC, it will be an extremely unfavorable precedent for the cryptocurrency industry. In an open letter entitled “Don’t Let Them Kill Cryptocurrencies,” Greenspan wrote:
“If the court ruled against LBRY, it would literally call into question the future of all cryptocurrencies, including bitcoin and ether. Judges are usually guided by previous decisions in similar cases, so a negative decision in the LBRY case will allow any project using tokens on the blockchain to be “killed”. Projects in the field of DeFi and NFT, projects based on smart contracts and any others, with the exception, perhaps, of stablecoins. ”
The analyst stressed that the regulation of the cryptocurrency industry in the United States lags far behind other countries. The only crime of LBRY’s management is that they chose the United States to launch their startup. Readers supported Greenspan, but noted that the cryptocurrency industry itself will remain afloat – only the United States will have problems. Cryptocurrency companies will simply change jurisdiction and continue their business. However, Greenspan himself hopes for a successful outcome of the case:
“Let’s hope the judge sees the gaping holes in the SEC statements. LBRY’s lawyers have very strong arguments, so I’m pretty optimistic in this case. ”
Recall that now the SEC is also conducting a case against Ripple. Back in December last year, the Commission filed a lawsuit against the management of Ripple, and in February of this year published an updated complaint.
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