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The Securities and Exchange Commission, SEC has recently accused Lbry Inc., a blockchain-based file sharing and payment network of selling unregistered securities. However, the Chief Executive Officer of the company has denied the charges and revealed SEC’s logic.
SEC Accuses Lbry Inc. of Selling Unregistered Securities
In the recent complaint filed by SEC, it was mentioned that the blockchain project has reportedly sold unregistered securities.
In response to this, the CEO of Lbry has clearly denied all the accusations and said that the SEC’s logic will put numerous public blockchain projects at risk.
Making use of the Securities Act of 1933, the Securities and Exchange Commission has gone after a number of blockchain projects and now the authority is stating that the LBC tokens are unregistered securities.
Addressing the LBC tokens, SEC said:
“LBC tokens were offered and sold as investment contracts, and therefore, securities.”
Prosecutors from the Securities and Exchange Commission believe that the firm has disturbed securities rules and regulations and that the firm should have registered LBC tokens.
Jeremy Kauffman, the CEO of Lbry Inc. however, refuses to agree with the allegations made on the firm by the SEC.
Highlighting the factor of ICO, initial coin offering, Jeremy said in a recent interview:
“Under the logic advanced by the SEC…every actively developed blockchain is at risk, especially Ethereum.”
In addition to this, the CEO said:
“As long as Ethereum developers are coordinating in some way while holding the token, they are in danger.”
CEO States Allegations Could Ruin the Crypto Industry
Discussions were followed by the filing of the complaint by the Securities and Exchange Commission on social media platforms and crypto forums.
The host of a show on YouTube, “Coin Talks Crypto,” shared a tweet that said:
“I bet the real reason Lbry is under attack from the SEC is not the stated reason at all.”
In accordance with the recent interview of Kauffman, he has been in talks with the supporters of crypto and blockchain to rally against the complaint filed by the SEC.