DefendCrypto: Kin Foundation Opens $5 Million Campaign to Take on the US SEC in Court
Kin Foundation’s founder Ted Livingston is set to launch an initiative called DefendCrypto.org with $5million in order to take on the Security and Exchange Commission in a monumental court battle. The foundation announced the latest development on a podcast called Unchained.
The SEC Battle
Ted Livingston stated categorically during the podcast that players in the cryptocurrency community can no longer be living in fear of the regulatory commission. He stressed that the commission should be bold enough to accept the emergence of digital currency as the new trend and if the commission will not make their stance clear, they will be forced to drag them to court and claim their right.
He stated categorically that:
‘’What will the SEC think? We are giving ourselves a fundamental handicap to compete on a global stage. Enough is enough, we need clarity, and the only way we are going to get clarity is if we go court, so let’s do that.’’
The running battle between the regulatory commission and the Kin foundation is not a new development. Two years ago, messaging giant Kik raised about $100 million in an ICO for the Kin token, the commission reached out three days later and after many tussles, it finally notified Kik last fall that it tends to pursue a legal battle against Kik and the Kin Foundation.
Reacting swiftly, Kik and the Kin foundation published a response to the SEC, which detailed the reason why their token cannot be categorized as security and does not meet the parameters of what a security is.
Furthermore, they also announced in a world street journal that they intend to challenge the SEC in court. The latest development, if pursued to the letter might force the regulatory commission to finally create a law that defines when crypto tokens and are not securities.
Although court cases might take years, others act like the Token Taxonomy act also needs a lot of clarity. Meanwhile, some crypto analysts like Livingston are of the opinion that the stringent laws by the commission will chase away laudable innovation from the United States.
Expressing his opinion in the podcast, he said:
‘’Someone says, wow, Kin, great idea. Let’s do it everywhere except in the United States.’’
America’s Loss, Asia’s Gain
Pulling his weight behind the recent statement from Livingstone is the co-Founder of Union Square Ventures Fred Wilson, who stated categorically that if America will not relax a little bit, most crypto innovation will move to Asia.
Bitcoin Exchange Guide reported earlier this month that Wilson stated that in 5-10 years time the SEC will regret its actions when it realizes that virtually all of the big names in the crypto community are centered in Asia.
A crypto analyst Jake Chervinsky also took to social media platform Twitter to express its opinion, stating that:
‘’This is the most important storyline in the world of crypto securities law in 2019, far more significant than the SEC guideline or proposed legislation. The SEC keeps saying tokens are securities, but can they prove that in court? Respect to Kik for their aggressive stance.’’