SEC’s Next Action against LBRY Could Significantly Impact All Cryptos, Says the Founder of Quantum Economics

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Mati Greenspan, the founder of Quantum Economics, says that the following action the US Securities and Exchange Commission (SEC) would deploy against decentralized platform LBRY could significantly affect all existing cryptos, not just the ones directly associated with the controversy.

To provide a bit of background regarding SEC’s battle against LBRY, SEC filed a complaint against LBRY last March 29th, alleging it to have sold millions worth of securities that aren’t registered via the LBRY Credit tokens starting even five years back. However, in response, LBRY argues that its tokens are but for utility purposes and not speculations, thus disputing the regulator’s accusations.

With that in mind, Greenspan believes that if SEC does get the win against LBRY, it will put all cryptos – currently existing and future ones – in question. Crypto giants such as BTC and ETH aren’t exempted either, according to Greenspan. The Quantum Economics founder then added that the US has ultimately fallen behind on adequate crypto regulation compared to other countries and warns that this specific case could adversely present the notion of classifying complex programmable money as securities.

Greenspan explains that judges generally base their decisions on previous rulings on similar cases. This means that an unfavorable ruling in this particular case could bring about the prospect of quickly killing off any project that tackles crypto utilization. Putting it simply, if SEC wins this case against LBRY, other judges faced with similar cases could easily give the win once again to the regulators despite if or not the defendants’ are presenting a stronger case.

As per Greenspan, this case further highlights the US’s backwards approach to innovation, which should be a major concern.

 

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