The US-based Blockchain Affiliation has filed an amicus curiae transient in help of Canadian messenger Kik amid the agency’s authorized battle with the Securities and Alternate Fee.
The affiliation addressed the April 17 transient to the court docket which is contemplating the case, asking it to disclaim the SEC’s movement for abstract judgment and determine the case narrowly to keep away from casting doubt on cryptocurrency initiatives which have but to seem earlier than the court docket.
In March, the SEC requested abstract judgment, claiming that it possessed “undisputed proof” that Kik’s ICO distributed unlicensed securities.
Not the identical as Telegram’s case
Principally, the Blockchain Affiliation says that the court docket should first decide whether or not Kik’s ICO to accredited traders and token sale to public consumers had been, the truth is, an built-in sale of securities and urges the court docket to not apply the strategy taken within the ongoing Telegram case. The transient reads that:
“Complying with current securities exemptions by contracting with refined accredited traders quantities to a ‘scheme’ to distribute unregistered securities to the general public sooner or later sooner or later. The Telegram determination treats cryptocurrency as in some way completely different from each different trade. Following that call may undermine innovation in an essential new subject of know-how whereas excluding an trade from the identical securities regulation exemptions which can be supposed to use uniformly.”
The affiliation additional states that the SEC is ignoring the essential variations in Kik’s actions and — as in Telegram’s case — has supplied little readability about its personal interpretation of whether or not and when digital property are securities.
Extra crypto corporations face lawsuits
Within the meantime, a number of main crypto corporations — Binance, KuCoin, BiBox, BitMEX and mum or dad firm HDR World Buying and selling Restricted, and alleged crypto issuers Block.one, Quantstamp, KayDex, Civic, BProtocol, Standing, and the Tron Basis — are dealing with class-action lawsuits that had been filed in a New York federal court docket, earlier in April.
The lawsuit alleges that quite a few exchanges have offered unlicensed securities with out broker-dealer licensing and engaged in market manipulation.
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