The crypto expert fears that a precedent could arise that would be fatal, at least for the American crypto industry.
Mati Greenspan, crypto expert and founder of Quantum Economics, warns that the latest lawsuit filed by the US Securities and Exchange Commission against the DeFi project LBRY could endanger the future of all cryptocurrencies.
As from the corresponding Application the SEC dated March 29, accuses the regulator LBRY before, with the sale of the associated cryptocurrency en masse since 2016 unlawful sale of securities to have committed. However, the project from the field of decentralized financial services (DeFi) vehemently denies this interpretation, countering that its own crypto currency is a utility token, i.e. a crypto token that is linked to a specific function. Accordingly, it is not a speculative investment product.
Greenspan says in the title of his new one that this case could have far-reaching consequences for the entire industry Newsletters clearly, which he published under the dramatic headline “You must not kill crypto”. Accordingly, he argues emphatically in his appeal:
“If the court were to rule against LBRY, it would literally endanger the future of all cryptocurrencies, including Bitcoin and Ether.”
In this context, the crypto expert points out that the USA is still lagging significantly behind on the subject of crypto regulation, which is why the present lawsuit could develop into a precedent which then sets the course as a reference:
“The American courts usually orient themselves on previous decisions in similar cases, which is why a negative decision in this case would make it much easier in future processes to destroy crypto projects and cryptocurrencies. This applies to DeFi, non-fungible tokens (NFTs), smart contracts and everything else that has to do with crypto, except maybe stablecoins. “
Greenspan sees the only flaw in the DeFi project as being in the USA. He told Cointelegraph that the lawsuit illustrates their “backward-looking regulatory approach for forward-thinking innovations”.
The Israeli crypto expert does not fear that a victory by the SEC will kill the crypto industry’s enthusiasm for innovation as a whole, but at least for the US he will then see it as black:
“Then all projects would migrate from the USA. Such crypto projects are already flourishing in Europe and Asia, and this technology is advancing all over the world. America is being left behind. “
LBRY hopes it doesn’t get that far in the first place. Therefore replies the projectthat “the SEC’s charge that our cryptocurrency has no other purpose than speculation” is false. Accordingly, the “credits” awarded on the platform, which are up for debate, would rather enable users to buy, publish and reward content. Accordingly, the LBRY credits should not be viewed as an investment product, which is why the project has repeatedly advised against purchasing its own cryptocurrency only for this reason.
Greenspan concludes by encouraging readers to log on to the website helplbrysavecrypto.com dig deeper into the case and understand “the idiotic acts of American regulators.”
Although he sounds the alarm loudly, the crypto expert is confident about the outcome of the process to Cointelegraph:
“I hope the court sees the clear loopholes in the SEC’s reasoning. LBRY brings up very strong counter-arguments, which is why I am quite optimistic. “