Kik Interactive Inc., the Canadian messaging app company, is allegedly about to take the SEC to the court over a potential enforcement action. The aforementioned action by SEC is against Kik’s 2019 Initial Coin Offering of one’s Waterloo, Ontario-based tech company’s proprietary cryptocurrency, Kin.
As per a crypto media outlet CCN, a Kik representative says that the stakes are high for the entire cryptocurrency and digital asset ecosystem. He adds likely unsure of how the Commission will vote. However, believe that that any enforcement action against Kik, Kin, as well as foundation could well be damaging to the entire digital asset and crypto industry.
Ted Livingston, CEO of Kik, told the Wall Street Journal about his company’s upcoming legal battle with the Washington D.C. regulatory giant. He wrote more information on it on his Medium blog.
It might be noted the fact that development practices SEC Chair Jay Clayton declared that he believes every ICO fresh seen is security. That has just about every cryptocurrency, including Ethereum, depending on him. He added that your is the thing that everyone in the industry is working with, but stuffed to talk about. Depending on him, for your stakeholders to be able to continue hiring, innovating, and competing, we will need to change that.
Notably, this is not unique to Kik. Interestingly, there’s lots of projects with a similar point with all the SEC. In accordance with Livingston, they all reckon that this industry needs regulation, additionally, they believe that that isn’t the way to get it.
In Kik Interactive’s official Wells Respond to the SEC, Kick mentions that Staff’s proposed enforcement action versus the Kin Foundation and Kik will similarly not succeed any rigorous analysis of whether offers and sales of Kin amounted to offers or sales of any “security” within the scope of Section 5 of one’s ’33 Act. Kin was designed, offered, and marketed as a currency to be utilized as a standard of exchange in a very new digital economy.