Yet another blockchain enterprise has gone under the radar of the Securities and Exchange Commission of the United States (SEC). LBRY Inc. is a blockchain-based and decentralized file sharing and payment network. The blockchain-based service is unique in a manner that it allows the users to get access to social media content, streaming services, and other exclusive content with the help of digital assets.
Last month the service was sued by SEC for the distribution of illegal securities. The allegations aim to categorize LBRY Credit Tokens (LBC), the native currency of the blockchain, as securities. The top brass of LBRY Inc. is facing the SEC in court to answer for their ‘illegal trading practices’ and raising millions of dollars through unlawful means. LBRY has included in its defence plea that LBC is not a security.
Is SEC Preparing for a Crackdown on the Digital Asset Trade in the United States?
Noteworthy investors like Ray Dalio have said that there is a huge possibility that the US government would start a ban on digital asset trades, including Bitcoin. He further added that it is also possible that Bitcoin would be replaced by another commodity entirely. However, these conspiracy theories seem like old wives’ tales to most crypto enthusiasts due to the massive volume of the cryptocurrency market worth $2 trillion.
SEC has already made a big deal out of Ripple Labs Case, and now it has directed its cannon towards a lesser-known digital assets enterprise LBR Inc. The major difference between the Ripple Labs case and LBR is that the latter is also a decentralized platform. The founder of Quantum Economics, Mati Greenspan, has been taking a keen interest in the latest development of the situation and has remarked that the action of the SEC can put the entire cryptocurrency market in jeopardy.
The doomsday siren for Bitcoin and other cryptocurrencies was gonged by SEC a long time ago. Greenspan says that the latest LBR vs SEC case can set off a chain reaction towards the destruction of the entire crypto trading. He believes that if SEC succeeds in getting a favourable ruling in the present case, it could mean the start of the end.
Since the courts are in the habit of taking reference from their other rulings, the current LBR Inc. case poses a big threat to the digital asset community. He further added in his newsletter that although the USA has the largest reserves of Bitcoin in the world, the regulations for digital asset trading are almost non-existent in the region.