Mati Greenspan, the founder of money-management and advisory firm Quantum Economics, has publicly warned that the future of cryptocurrencies may be at risk. The warning stems from the legal trouble by the Securities and Exchange Commission (SEC) against the decentralized file-sharing platform, LBRY Inc.
The SEC wants LBRY Inc to give up all ‘ill-gotten’ gains from the sale of its LBRY Credit Tokens (LBC), and is also seeking a judicial order to prevent the platform from selling more LBC.
Late last month, the Commission took legal action against the file-sharing platform. The SEC alleged that the platform did not register the token with the before offering the asset across several platforms between 2016 and 2020. Although the SEC considers the LBC a security, LBRY has denied the claim.
In a newsletter, Greenspan highlighted the implications of a court ruling in favor of the Commission. He mentioned that if the court sides against LBRY, the future of Bitcoin, Ethereum, and other cryptocurrencies would be shaky. Given that judges usually take guidance from previous verdicts in similar cases, Greenspan mentions that:
“a negative ruling here could make it easier for them to kill off any project which utilizes crypto tokens.”
Greenspan further urged, in a section of the newsletter, that readers should write to their Congressmen concerning this issue. He also implored readers to sign a petition titled ‘Cryptocurrency is NOT a Crime’ on Change.org for more enlightenment.
