• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
Breaking News: Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play GamesTry
  • Play Casino GamesTry
No Result
View All Result
NewsBTC
No Result
View All Result
Breaking News: Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan

Why is Kik Challenging The SEC In Anticipated Crypto ICO Court Case?

Nick Chong by Nick Chong
4 years ago
in ICO
Reading Time: 3 mins read
Advertisement

Ever since initial coin offerings (ICOs) became mainstream, regulators, especially the U.S.’ governmental agencies, have sought to make moves against this newfangled form of funding. The crypto assets from these sales are touted as utility-centric, but incumbents have argued that they resemble securities.

Jay Clayton, a commissioner at the U.S.’ Securities and Exchange Commission (SEC), has claimed on multiple occasions that ICOs are not exempt from the financial legislature. In a speech, Clayton, a Trump appointee, remarked that not only should ICOs adhere to the SEC’s laws, but that such models are inherently risky, touching on the fraud and manipulation that questionable projects could enlist.

Yet, an up-and-coming watershed case could change ICO-issued tokens’ legal classification altogether.

Get 30 FREE SPINS at Punt Casino - NO DEPOSIT REQUIRED! Start Playing Now.
No Deposit 40 FREE SPINS at Wild.io on SIGN UP. Wheel of fortune, daily bonuses, 10 BTC in prizes monthly! Start Playing Now!
Related Reading: Sign Of The Times: Basis Shutters $133M Crypto Project Due To Regulation

Kik Challenges SEC Over KIN Crypto Offering

According to an exclusive report from the Wall Street Journal, the Ontario, Canada-based social media giant, Kik, is looking into challenging the SEC over its 2017 KIN token offering. Speaking to the Journal, Ted Livingston of the Canadian upstart explained that his firm intends to fight proposed enforcement action over the ICO, which raised $100 million and wasn’t registered with the SEC.

While cynics would claim that Livingston & crew don’t have a leg to stand on, Kik believes that its rebuttal, which is to be filed in civil courts, is valid and could set a precedent for this nascent ecosystem. In fact, Kik’s lawyers 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.”

If an American civil judge determines that Kik’s ICO wasn’t a securities offering, not only would the firm be safe from hefty fines and other stringent measures, but it could also aid dozens of other projects struggling under the SEC’s iron fist. But will the overseeing judge, who has yet to be named, deem that KIN is out of the SEC’s jurisdiction?

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Crypto-Friendly Lawyer: Token Taxonomy Act Could Get Pushed

The precedent that this case could set shouldn’t be the only occurrence that cynics of crypto-related regulations should be looking forward to. Per previous reports from NewsBTC, in mid-December, amid a widespread market meltdown, two U.S. congressmen revealed the “Token Taxonomy Act.” The bill, a bipartisan effort from Warren Davidson of Ohio and Darren Soto of Florida, will disallow the SEC from classifying fully-fledged “digital tokens (crypto assets)” as securities.

Speaking in a statement on the matter, Davidson noted:

“In the early days of the internet, Congress passed legislation that provided certainty and resisted the temptation to over-regulate the market. Our intent is to achieve a similar win for America’s economy and for American leadership in this innovative space.”

While the integration of such a bill would likely revitalize this industry, the Token Taxonomy Act is still months, if not years away from going live in the real world. Jake Chervinsky, a crypto-friendly attorney at Kobre & Kim, recently took to Twitter to note that there will likely be “months or years of Committee hearings & revisions” before the bill could reach a voting stage.

I don't know if there's any validity to the rumor that the Token Taxonomy Act will be reintroduced in Congress on February 14, but even if true, there will be months or years of Committee hearings & revisions before the bill could even possibly see a vote. Don't hold your breath.

— Jake Chervinsky (@jchervinsky) January 26, 2019

Featured Image from Shutterstock
Tags: cryptoICOregulationsec
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
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.

Related Posts

iota

IOTA Price Hits 3-Year High as Focus Shifts on IoT Protocol Overhaul

2 years ago
altcoin crypto bitcoin ieo ethereum

This Class of Once Hyped Altcoins Is Headed To Zero

3 years ago
Optimism

Crypto CEO Optimistic Over US Regulatory Outlook

3 years ago
cryptocurrency bitcoin scam

Zambian SEC Warns Investors About Scam Cryptocurrency Investments

3 years ago
bitcoin, ethereum

Ethereum Stays in Massive Downtrend Against Bitcoin

4 years ago
Kin Appeals to Crypto Space for Help with Legal Fees to Fight SEC for Regulatory Clarity

ICO Law Specialist Calls for Kik CEO to Stand Down in Crypto/Securities Case vs SEC

4 years ago

Premium Partners

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Metaspins

Metaspins

Review · Visit
Trust Dice

Trust Dice

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
Coinplay

Coinplay

Review · Visit
mBit

mBit

Review · Visit
Vave

Vave

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
Coinplay

Coinplay

Review · Visit

“Gold has been the best performing investment asset over the last two decades”: an interview with Easygold

January 30, 2023

The Crypto Dream Team: Binance Coin (BNB), Polygon (MATIC) and Orbeon Protocol (ORBN)

January 30, 2023

Polygon (MATIC) and Fantom (FTM) Are Losing Favor With Investors As They Turn To Snowfall Protocol (SNW) For 1000x Potential Gains!

January 30, 2023

Tezos (XTZ) shares its 12th protocol upgrade, Twitch Co-Founder’s Gaming NFT Marketplace Expands to Polygon (MATIC) Network while Snowfall Protocol (SNW) Breaks Record Highs

January 30, 2023

Snowfall Protocol Investors Happy After the Release of Snowfall DEX, Twitch Co-Founder’s Solana Gaming Platform Fractal Expands to Polygon, And Majority of Dogecoin Holders Are in Profits Despite the Meme Coin Being Down 87% From Its 2021 ATH

January 30, 2023

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.

Links

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2022 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Events
  • Play Games
  • Play Casino Games

© 2022 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.