SEC ‘Out to Damage or Destroy’ Crypto Industry: LBRY CEO

LBRY CEO Jeremy Kauffman called out the Securities and Exchange Commission on Messaris Mainnet, as the file-sharing network faces scrutiny from the regulator.

SEC loaded LBRY with the sale of unregistered securities in March last year. The commission took issue with over $11 million in funding raised through the sale of LBRY Credits, which are now used to upload files and make payments on the blockchain-based platform, but were offered for sale before the network was built.

That led the SEC to view LBRY Credits as investment contracts, based on the notion that people assumed they would increase in value after purchasing the tokens.

Kauffman said the company has been “fighting” the SEC for nearly five years and soon expects a federal judge to consider whether a full trial is necessary.

The ruling will have far-reaching implications for other companies as well, according to him, setting a certain level of precedent for companies that have raised money for their projects through an initial coin offering, or ICO.

“The facts of this case will basically apply to every company in this room,” he said. “The SEC has very much shown that they are out to hurt or destroy the cryptocurrency industry in the United States.”

Not only was the CEO verbally critical of the commission, he also wore a shirt that day that visually expressed condemnation of the regulator.

Although Kauffman has faced pressure from regulators, he has entered the political realm with the goal of being elected this year. If elected, one of his main priorities will be to bring more attention to the cryptocurrency scene.

Kauffman is currently on the ballot in New Hampshire, representing the Libertarian Party in a bid to become one of New Hampshire’s next U.S. Senators.

A few cryptocurrency advocates have approached New England to host campaigns, including Bruce Fenton and Brock Pierce, but have had little success securing a seat.

Fenton lost his Senate campaign earlier this month, and Pierce never made it onto the Vermont ballot. However, Keith Ammon, a New Hampshire House representative up for re-election in 2020, has a track record of supporting the industry.

“You send him a pro-crypto bill, it will be introduced next session,” Kauffman said. “That’s the only way we can make blockchain legal — we have to get into office, we have to pass new laws,” Kauffman said.

Kauffman believes that his file-sharing platform and libertarian ideology are somewhat aligned with how some people feel about politics and social media. He said: “People are tired of these bureaucrats – these middlemen – making these decisions for them.”