Matty Greenspan warns that the SEC’s latest action could threaten the future of all cryptocurrencies.
Quantum Economics founder Matti Greenspan said the SEC’s lawsuit against LBRY rang an alarm over the possible damage to cryptocurrency.
According to Cointelegraph, a cryptocurrency media outlet on the 9th (local time), Matty Greenspan, founder of Quantum Economics, said that the U.S. Securities and Exchange Commission’s recent action on the decentralized content platform LBRY could threaten the future of all cryptocurrencies. Warned.
According to a complaint filed by the SEC on the 29th of last month, LBRY has been accused of providing and selling millions of won worth of unregistered securities through LBRY credit tokens since 2016. The SEC has filed an objection to the SEC’s lawsuit, stating that its tokens are focused on utility rather than speculation.
In a newsletter entitled “Don’t kill cryptocurrencies,” Greenspan affirmed that if the SEC lawsuit against LBRY was successful, it would have dramatic consequences.
If the court gives the SEC’s hand, it will question the future of all cryptocurrencies, including Bitcoin and Ethereum.
Greenspan points out that the U.S. is far behind cryptocurrency regulations and warns that this case could set a precedent for classifying’multi-programmable currencies’ as securities.
“Because judges generally follow guidelines from previous rulings in similar cases, it is easy to get rid of any project that uses crypto tokens if they make a negative judgment in the country. DeFi, Non-Fulgible Tokes (NFT), smart contracts, And almost everything except for stablecoins,” he said.
Greenspan criticized the platform’s only crime as “installed in the United States,” adding that the case underscores the “backstep to forward-looking innovation” in the United States.
Although he doesn’t believe that the SEC’s victory in this lawsuit will generally suppress innovation in the cryptocurrency industry, he said, he believes it will certainly do so in the US. Projects like this are now thriving in Europe and parts of Asia, and technology continues to advance globally. The United States is lagging behind.”