the U.S. securities and exchange Commission Initial Coin Offerings (ICOs) has been going on for some time in his sights and intends to regulate as ordinary securities. Much to the chagrin of the crypto industry, who feel bullied. Kik, the company behind the eponymous messaging App, now brings the – the verdict could have far-reaching consequences.
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28. January 2019BTC$3.412,27 -4.23%part Facebook Twitter LinkedIn xing mail
As the Wall Street Journal reported, wants to pull Kik against the SEC in court, and a classification of the 2017 introduced Kin-Token as a Security Token (value paper). Ted Livingston, CEO of Kik, said that he could create with his action, an important precedent and described the current course of the U.S. securities and exchange Commission as “completely flawed”.
Kik vs. SEC: “ICO-regulation hurts the economy”
at The core of the dispute relates to the legal and legal evaluation of ICOs. The sec viewed ICOs as a rule, securities and puts up high legal hurdles to protect investors better against the often risky Crowdfunding models. The company, with ICOs on the market, the bypass and refer to tokens, the tokens, therefore, as a Utility. The Kin-Token that is not yet registered with the SEC as a securities. Exactly want to change the stock market regulator.
The ruling could have, therefore, not only for Kik as a single company, but for the entire crypto industry have far-reaching consequences. If Kik has with the lawsuit’s success, could follow suit of other companies and the legal valuation of ICOs as a Security Token challenge. So, Kik-in-chief Livingston, would bring the entire crypto-industry a “much needed boost to innovation and strengthen the economy.”
US-MPs want regulation of ICOs tilting
Whether the civil suit of Livingston has success, does not currently foresee. However, the voices that criticize the strict Regime of the SEC. This resulted in the end of December 2018 in the “Token Taxonomy Act” of the two members of US Congress, Warren Davidson and Darren Soto. The bill provides that the sec shall not classify any ICO as the value of paper. So you wanted to protect the U.S. economy from Overregulation, and “the leading role of the country in the crypto sector to ensure”.
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meanwhile, the SEC is increasingly harder against ICOs. In the past few months, the stock exchange determined supervision against hundreds of companies and issued the appropriate summonses. The Chairman of the SEC, Jay Clayton, is quoted with the words: “I think every ICO that I know of is a value of paper.”
