With the adoption of cryptocurrencies on the rise, governments throughout the world has started paying attention to the regulation of cryptocurrencies – or the lack thereof. While the stance of the Biden administration on the cryptocurrency market is unclear, the new expected head of the US Securities & Exchange Commission Gary Gensler is expected to resolve the issue to crypto regulation being well-versed in the block chain technology.
The SEC’s crackdown on the crypto market appears more of a reality each day as the Commission first went after Ripple Labs and now LBRY. LBRY is a Youtube competitor based on the blockchain. The content sharing and publishing platform is completely decentralized and, hence, owned by its users. In the lawsuit registered last week, SEC alleged that LBRY Inc. used the LBRY credit tokens to fund the project without registering them as securities first. The CEO denied the allegations and questioned the repercussions of the SEC’s actions. According to the CEO of LBRY Inc. Jeremy Kauffman, the lawsuit put every block chain at risk.
Mati Greenspan, the founder of Quantum Economics, has also warned the crypto community of the intentions of the SEC in a newsletter. Greenspan states the lawsuit can threaten the future of the whole cryptocurrency market:
“a negative ruling here could make it easier for them to kill off any project which utilizes crypto tokens. DeFi, non-fungible tokens (NFTs), smart contracts, and just about everything except possibly stablecoins would potentially be on the chopping block.”