NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Kik Fights SEC, Will it Set Crucial Precedent For Crypto Companies?

Nick Chong
Nick Chong
5 years ago
3 mins read
crypto

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Despite the fact that Bitcoin and crypto assets are still down from their all-time highs, regulators the world over are more active than ever before in regulating this budding industry.

Earlier this year, the U.S. Securities and Exchange Commission (SEC), the financial regulators presiding over most crypto projects with their own tokens, aimed its sights at initial coin offerings (ICOs).

Related Reading: North Korea’s Crypto Cyber Attacks May Further Fuel US Fear of Bitcoin

Presumably due to its size and market impact, the SEC chose social media company Kik’s KIN ICO to target. But it seems that the Canadian crypto-friendly firm isn’t going down without a fight, releasing an impassioned response in the form of a 100-page legal dispute.

Kik Interactive has hit back at the Securities and Exchange Commission lawsuit – @techcrunch https://t.co/Wn7ivly2v1

— Kin Ecosystem ⬢ (@Kin_Ecosystem) August 7, 2019

Kik Sued by SEC

For months now, Kik and the broader crypto community have been anticipating legal action. NewsBTC reported six months back that Ted Livingston, the chief executive of the firm, explained that his team is planning on fighting the SEC regarding its $100 million token sale that was not registered with the authority.

In a letter, Kik’s lawyer even called the financial regulator’s approach to cryptocurrencies “flawed,” writing:

“Bringing the proposed enforcement action against Kik and the foundation would amount to doubling down on a deeply flawed regulatory and enforcement approach.”

Despite this strong stance, the SEC took action anyway. In a press release published in early-June, the SEC revealed that it would be suing Kik for breaking securities laws.

Robert Cohen, the Chief of the Enforcement Division’s Cyber Unit, noted that since the firm explicitly told investors that they could post a gain on their KIN tokens, the crypto assets could be classified as securities:

“Future profits based on the efforts of others is a hallmark of a securities offering that must comply with the federal securities laws.”

Kik was quick to react. The week prior to the press release’s publishing, it created DefendCrypto, a fund meant to ensure that Kik could correctly fight the SEC to set a new legal precedent for ICOs and the broader digital asset space. The fund hasn’t gained that much traction yet, sporting a pool of funds mostly sourced from Kik itself.

Hands Thrown Over KIN Crypto

Regardless, Kik has continued to fight for itself and the crypto and blockchain industry. Today, the firm released a legal response over 100 pages long to rebut the SEC’s complaint.

Katherine Wu, formerly of industry analytics and data provider Messari, broke down and annotated the report.

😱 IT HAPPENED!!!!!:

Kik filed their answer to the SEC's complaint today and it's 100+ pages long and if you don't think I'm crazy enough to annotate ALL OF THE PAGES YOU'RE WRONG.

Happy reading + some thoughts from me 🙂https://t.co/4YcMfDlRSm

— Katherine Wu (@katherineykwu) August 7, 2019

While the piece is quite long, there are a few key takeaways put forth by Kik’s team of lawyers and technologists: Kik did not sell digital securities, and thus did not violate any pertinent federal laws; the crypto isn’t the firm’s attempt to save itself from going under; KIN isn’t the only company foraying into social media digital assets, but is the first; the SEC is ignoring certain statements that would help Kik’s case; the SEC is operating on a “flawed factual and legal premise”.

if Kik manages to prove that the current system the SEC has in place for targeting cryptocurrency projects is outdated or doesn’t fit digital assets, the regulator will likely need to create a new version of the Howey Test for the industry.

Related Reading: Bitcoin Faces Strong Resistance at $12,000 as Technical Strength Builds

This would be a step in the right direction, as it would set a legal precedent for firms in Kik’s boat to be safe from certain legal risks. This precedent may even spark a newfangled influx of crypto innovation, as the clarity provided by such a victory may push technologists to kickstart their plans to foray into this space.

Featured Image from Shutterstock
Tweet123Share213ShareSend
Nick Chong
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin

No Need To Panic, Bitcoin’s Peak Still Coming In October 2025 – Analyst

Bitcoin prices dipped by 0.93% in the last day after the premier cryptocurrency suffered another price rejection in the $110,000...

Semilore Faleti 9 hours ago
Litecoin

Litecoin Fate Tied To Bitcoin – Will $96 Resistance Crack?

In a recent X post, CryptoWzrd highlighted that Litecoin (LTC) closed the day on a slightly bearish note. He explained...

Godspower Owie 11 hours ago
Ethereum

Ethereum Price Stuck At $2,500: Analyst Says Don’t Trade Until This Happens

The Ethereum price is currently locked in a narrow trading range of around $2,500, with momentum stalling despite the market’s...

Scott Matherson 17 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Top crypto analist: het ideale Dogecoin koopmoment voor kans op 200% rally

Top crypto analist: het ideale Dogecoin koopmoment voor kans op 200% rally

Lars Diederiksen 1 hour ago
Ethereum Wyckoff Accumulation Hints At Explosive Q3 – $4K Level In Sight

Ethereum Wyckoff Accumulation Hints At Explosive Q3 – $4K Level In Sight

Sebastian Villafuerte 1 hour ago
Bitcoin

Analyst Shares Bitcoin Cheat Sheet Showing When The Bull Run Begins

Scott Matherson 8 hours ago

Premium Sponsors

Press Releases

  • Cryptocurrency is the best way to get rich quickly, easily...

    6 hours ago
  • XRP Cryptocurrency × Dogecoin Mining: HASHJ launches...

    13 hours ago
  • Koja kriptovaluta ima veći potencijal za stvaranje milijunaša XRP ili Shiba Inu

    Koja kriptovaluta ima veći potencijal za stvaranje...

    17 hours ago
  • 3 altcoina koje vrijedi pratiti u prvom tjednu srpnja 2025

    18 hours ago
  • XRP Bulls Are Soaring — FINDMINING Rides the Wave to...

    24 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.