THELOGICALINDIAN - Despite the actuality that Bitcoin and crypto assets are still bottomward from their alltime highs regulators the apple over are added alive than anytime afore in acclimation this beginning industry
Earlier this year, the U.S. Securities and Exchange Commission (SEC), the banking regulators authoritative over best crypto projects with their own tokens, aimed its architect at antecedent bread offerings (ICOs).
Presumably due to its admeasurement and bazaar impact, the SEC chose amusing media aggregation Kik’s KIN ICO to target. But it seems that the Canadian crypto-friendly close isn’t activity bottomward after a fight, absolution an animated response in the anatomy of a 100-page acknowledged dispute.
Kik Interactive has hit aback at the Securities and Exchange Commission accusation – @techcrunch https://t.co/Wn7ivly2v1
— Kin Ecosystem (@Kin_Ecosystem) August 7, 2019
Kik Sued by SEC
For months now, Kik and the broader crypto association accept been anticipating acknowledged action. NewsBTC reported six months aback that Ted Livingston, the arch controlling of the firm, explained that his aggregation is planning on angry the SEC apropos its $100 actor badge auction that was not registered with the authority.
In a letter, Kik’s advocate alike alleged the banking regulator’s access to cryptocurrencies “flawed,” writing:
“Bringing the proposed administration activity adjoin Kik and the foundation would bulk to acceleration bottomward on a acutely awry authoritative and administration approach.”
Despite this able stance, the SEC took activity anyway. In a press absolution published in early-June, the SEC appear that it would be suing Kik for breaking balance laws.
Robert Cohen, the Chief of the Enforcement Division’s Cyber Unit, acclaimed that back the close absolutely told investors that they could column a accretion on their KIN tokens, the crypto assets could be classified as securities:
“Future profits based on the efforts of others is a authentication of a balance alms that charge accede with the federal balance laws.”
Kik was quick to react. The anniversary above-mentioned to the columnist release’s publishing, it created DefendCrypto, a armamentarium meant to ensure that Kik could accurately action the SEC to set a new acknowledged antecedent for ICOs and the broader agenda asset space. The armamentarium hasn’t acquired that abundant absorption yet, antic a basin of funds mostly sourced from Kik itself.
Hands Thrown Over KIN Crypto
Regardless, Kik has connected to action for itself and the crypto and blockchain industry. Today, the close appear a acknowledged acknowledgment over 100 pages continued to break the SEC’s complaint.
Katherine Wu, aforetime of industry analytics and abstracts provider Messari, bankrupt bottomward and annotated the report.
? IT HAPPENED!!!!!:
Kik filed their acknowledgment to the SEC's complaint today and it's 100 pages continued and if you don't anticipate I'm crazy abundant to comment ALL OF THE PAGES YOU'RE WRONG.
Happy account some thoughts from me 🙂https://t.co/4YcMfDlRSm
— Katherine Wu (@katherineykwu) August 7, 2019
While the allotment is absolutely long, there are a few key takeaways put alternating by Kik’s aggregation of attorneys and technologists: Kik did not advertise agenda securities, and appropriately did not breach any pertinent federal laws; the crypto isn’t the firm’s attack to save itself from activity under; KIN isn’t the alone aggregation foraying into amusing media agenda assets, but is the first; the SEC is blank assertive statements that would advice Kik’s case; the SEC is operating on a “flawed absolute and acknowledged premise”.
if Kik manages to prove that the accepted arrangement the SEC has in abode for targeting cryptocurrency projects is anachronous or doesn’t fit agenda assets, the regulator will acceptable charge to actualize a new adaptation of the Howey Test for the industry.
This would be a footfall in the appropriate direction, as it would set a acknowledged antecedent for firms in Kik’s baiter to be safe from assertive acknowledged risks. This antecedent may alike atom a contemporary arrival of crypto innovation, as the accuracy provided by such a achievement may advance technologists to kickstart their affairs to attack into this space.
