SEC Charges Another Crypto: Why Is This Important?

SEC Charges Another Crypto: Why Is This Important?

By StarkMatan | Toddler Hodler | 1 Apr 2021


If you are not new in crypto world, you've probably heard about SEC lawsuit againsts Ripple Labs Inc. If you are new, or just want to refresh your memory, here is a quick rundown, before we get to the topic:

> What is SEC?

SEC

The U.S. Securities and Exchange Commission is a large independent agency of the United States federal government that was created following the stock market crash in the 1930s to protect investors and the national banking system. 

> What is Ripple Labs Inc?

Ripple Labs Inc

It's an technology company, which developes the Ripple payment protocol, which supports many units of value, and has a built-in cryptocurrency - XRP.

> SEC lawsuit againts Ripple Labs.

In December 2020, SEC registred lawsuit againts Ripple's two executives for selling XRP tokens, claiming that XRP is an security, and not a commodity. Thus, the sale being, by SEC claims, a sale of unregistred securitties, for the purpose of 'enriching themselves'.

The lawsuit, obviously has taken it's negative toll on XRP, with price of the token fractionating and led to Coinbase delisting XRP.

But, as the case actually went to court, it became obvious, that it's made out of thin air, just like millions SEC claims were created for Ripple. 

Even Marry White, former SEC executive claimed that, "There’s no way to sugarcoat it. They’re dead wrong legally and factually".

While the case is far from resolved, all signs are pointing that Ripple will, hopefully, win this.

SEC New Charges againts LBRY

It doesn't matter if you are a proud XRP Hodler or think that Monero (XRM) is doing the same thing, but better, you have to agree that SEC trying to shut down Ripple and clasify XRP as security is a worrying sign for the cryptocurrency market of USA, and by transitivity for the whole crypto market. 

Unfortunately, SEC didn't stop at that.

On 30 March they charged LBRY with the same offense, claiming that LBRY offered unregistred securitties. While SEC did claim, in 2018, that Ethereum is not considered by them as security, they are now launching an attac to many of small projects that are built on Ethereum blockchain, and that's scarry.

Needless to say, that if SEC will succeed in their attempt to mantain the new standard to make all blockchain tokens securities, it will be disastrous for all of us.

 

LBRY is not billion dollar company, like Ripple, and there are a lot smaller projects, so we need to help them. While I don't believe of power of positivity or that massive protest in WEB can change a lot, I've been proven wrong, the interent weebs did force to change Sonic, member?

Sonic

So, if you are interested in helping, follow this link and sign the pettion.

 

 

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