Mati Greenspan stands as the founder of Quantum Economics, and has recently warned that the latest action from the SEC, going against the LBRY content platform, could threaten the entirety of the crypto space and its future.
Warning Against The Death Of Crypto
The SEC filed a complaint against LBRY on the 29th of March, 2021, where it claimed that LBRY Credit tokens are an unregistered security, and that the platform had been offering and selling millions worth of it since 2016. The accusations of the SEC got disputed by LBRY itself, claiming that their tokens aren’t dedicated for speculation, focused on utility instead.
Greenspan gave out a newsletter today, giving it the title of “Don’t let them kill crypto.” In this newsletter, Greenspan claims that there will be dramatic consequences for the crypto space at large should the SEC manage to pull off the lawsuit against LBRY.
A Precedent That Could Damn US Crypto
Now, Greenspan reiterated how the US is lagging behind when it comes to crypto regulation at large. He warned that, should the SEC manage to win this case, a new precedent could be set when it comes to classifying “multifaceted programmable money” as a security under the eyes of the US government.
He explained that, typically speaking, judges seek previous rulings as a guidance when it comes to similar cases. What this means is that a negative ruling for LBRY could have the result of making it easier for the SEC to kill off any sort of project that makes use of cryptocurrencies as well. This includes smart contracts, DeFi, NFTs, and anything else within the crypto space, barring maybe a stablecoin.
US Lagging Behind In Crypto
According to Greenspan, the only crime LBRY is guilty of is setting up its platform within the US. Indeed, Greenspan hammered home the backward approach the US has to these forward-facing innovations through this legislation.
It should be noted that Greenspan isn’t convinced that the crypto space will up and die the moment the SEC wins this case, but did warn that the US crypto space could be severely affected through it. He highlighted how these types of projects are flourishing across the world, particularly Asia and Europe, with the US being left behind as time goes on.
LBRY highlighted how the SEC claimed that its tokens had no use outside of blatant speculations, which it sees as a downright falsehood. The platform highlighted that it’s used to publish, tip, purchase, and otherwise boost content within it at large, as well.