Messaging app firm Kik based in Canada has initiated a crypto crowdfunding campaign in order to fight the US Securities and Exchange Commission in court over its 2017 ICO. In the latest cryptocurrency news below, we find out more about the court battle.
The founder of Kik and CEO Ted Livingston and Patrick Gibbs spoke during the Unchained Podcast on Tuesday that the campaign is launched aiming at the lawsuit that will eventually result in a new ‘’Howey test for crypto tokens to determine which ones are security.’’
There has already been a dedicated website under the name Defend Crypto which allows the supporters to contribute the fundraising effort. The founders of the messaging app firm Kik say that they appreciate the support from the people and the crypto companies that face potential action from the United States Securities and Exchange Commission as well. The side allows for donation in 19 different cryptocurrencies including ether (ETH), Ripple (XRP), Bitcoin (BTC) and Augur (REP). Supporters can also donate with Kik’s kin (KIN) token.
The SEC expressed concerns that the kin token might be security so the regulator is now looking for enforcement action against the company. The SEC chairman Jay Clayton stated previously that he believes every ICO is as security and noted:
“I want to go back to separating ICOs and cryptocurrencies. ICOs that are securities offerings, we should regulate them like we regulate securities offerings. End of story.”
On the other hand, KIK stated:
“After months of trying to find a reasonable solution, Kin has been unable to reach a settlement that wouldn’t severely impact the Kin project and everyone in the space. So Kin is going to take on the SEC in court to make sure there is a foundation for innovation going forward.”
The case will set a precedent for how cryptocurrencies will get regulated in the US. Kik says that the Defend Crypto campaign will help them ensure that the funds are in place ‘’to do this the right way.’’ The company also noted in the coming altcoin news that about $5 million are spent on the case already and they are aiming to gather $5 million more.
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