Investing.com – This is how the blockchain and cryptocurrency giant has described it as a violent and catastrophic complaint.
A new lawsuit from the US Securities and Exchange Commission may threaten the cryptocurrency industry in the United States of America and perhaps abroad.
These negative repercussions were reflected on the performance of the major currencies, which started trading on Wednesday with strong rallies, before abandoning them.
Bitcoin lost, during those moments, 2% of its value, down from near the levels of 60 thousand dollars to the levels of 58.2 thousand dollars, bringing the market value to 1.085 trillion dollars.
While it fell by 1.7%, down to levels of $ 1.81 thousand, bringing its market value down to $ 208 billion.
And lost gains amounted to about 5% in early trading, to trade with a marginal increase of not more than 0.01% at levels of $ 296.8.
It fell by 4.27% to $ 1.18, while it declined by more than 5%, to $ 0.55.
Blockchain Libre Inc. said it is under attack from the US Securities and Exchange Commission for selling unregistered securities.
Blockchain company Libre Inc. claims the case could set a precedent that would affect a large portion of the industry.
About 6,700 people have petitioned the Securities and Exchange Commission to drop the case and set clear standards for the digital currency industry in the United States.
The SEC has been looking into the blockchain-based publishing platform Libre as part of a three-year investigation that began in May 2018.
The Securities and Exchange Commission made a claim alleging that the platform sold unregistered securities through multiple methods, including to institutional investors and users of the platform, between 2016/2020.
The regulator is seeking a permanent court order to prevent the company from selling more tokens, canceling all interest-bearing funds, and paying an amount not disclosed in civil fines.
Blockchain Libre Inc. responded to the SEC, saying its complaint threatens much of the cryptocurrency field because it will recognize most tokens as securities.
Libre has developed a decentralized video sharing platform called Odyssey that allows viewers to earn cryptocurrency by watching videos and for creators to earn Libre credits for their work.
Since 2016, 13 million LBC tokens have been sold for $ 5 million.
The SEC said the total amount raised was $ 11 million, including US dollars and services from buyers who participated in its offer.
According to Libre, although it did not conduct an initial coin offering (ICO) and the SEC has not claimed fraud, the authority rejected its attempts at settlement.
The SEC refused to provide any conditions that would make it possible for US citizens to exchange tokens or allow Libre Inc. to continue operating.
Libre said it was fully prepared to enter into a settlement, but that the Securities and Exchange Commission was aiming to suspend the company, not to settle.
Libre added that the Securities and Exchange Commission is advancing rapidly and a catastrophic new standard that will make nearly all blockchain tokens a security.
Libre said classifying all actively developed blockchain tokens as securities would be a bureaucratic nightmare for residents of the United States and companies operating in the United States.
And while the authority told Libre it could not provide advice on this and could only say it was in violation of the law.
Libre said it will bear fruit in business unaffected as the work system is completely decentralized with hundreds of people across six continents, most of whom are not employees of Libre.
And in late December 2020, Ripple, the sixth-largest cryptocurrency by market value, took a hit from the US Securities and Exchange Commission.
The Securities and Exchange Commission mandated Ripple, which is linked to the cryptocurrency XRP, to conduct an unregistered securities offering of $ 1.3 billion.
The authority said at the time that Ripple was a security, not a cryptocurrency, after which Coinbase, the largest cryptocurrency exchange in the United States, closed trading on XRP.