Now given how aggressive the sec has been with ripple the company and XRP the cryptocurrency it should come as no surprise that the regulator is going after other crypto companies and projects in a similarly shocking manner and the one that seems to have flown under the radar is library.
For those unfamiliar library is a crypto project that powers a decentralized video streaming platform called odyssey which is similar to youtube. The library protocol has been around since 2016 which is why it took the crypto industry by surprise when the sec went after the company that created the library protocol last march. Naturally the sec is arguing more or less the same thing it’s arguing in ripple’s case the library credit. Cryptocurrency is a security like a stock in a company specifically library and because library the company sold library credits in a 2016 ico without registering with the sec it broke the law. The sec’s case against library is a big deal because even though it comes after the sec’s case against ripple the case has been progressing a lot quicker probably because it’s not as high profile.
Regardless this case is likely to set a precedent not just for XRP but any other crypto the sec wants to kill. According to cryptojournalist Naomi Brockwell the judge presiding over the sec’s case against library will make a decision in four to eight weeks and if the judge sides with the sec then this could deal a devastating blow to XRP and the entire crypto industry. That’s because the sec is arguing that the utility or purpose of a cryptocurrency doesn’t play a role in its status as a security a claim that is as crazy as it is incorrect even according to the sec’s own standards which it never seems to follow. From what I’ve been able to gather the sec is gearing up to go after just about every cryptocurrency it can and we got more evidence of this last week when the sec claimed that nine crypto currencies were securities. As part of its case against coinbase employees who allegedly engaged in insider trading.
The cryptocurrencies in question are power ledger chromatica dfx finance amp. Rally the rari governance token derivadow lcx and xyo network note that there are 16 other cryptocurrencies that are a part of the case which the sec did not count as securities. Now I’ll be doing a text explaining why the sec is targeting some of these cryptocurrencies and not others later this week but for now I’ll give you one word – bias plain and simple bias and it’s possible that this bias is coming from US politicians more about that later this week. .