The largest US cryptocurrency company Coinbase and startup Kik announced the launch of a special fund to cover legal costs in the proceedings with the US Securities and Exchange Commission (SEC). This was announced by CEO Kik Ted Livingston, writes Unchained .
The Foundation was named DefendCrypto, and the partners of the initiative were the startup Circle, the platform ShapeShift, the analytical portal Messari and the non-profit organization for the protection of the free Internet Fight for the Future.
The Coinbase custody service will be used to store the assets of the fund. At the moment, Kin has already allocated over $ 5 million in favor of the fund in BTC, ETH, KIN and other cryptocurrencies.
The startup also encourages community members to join the initiative. If the amount of funds raised exceeds the legal costs of the proceedings with the Commission, they will be directed to other support for other projects.
“We have to make it clear to the SEC that we can no longer be pushed around. The time has come to protect the cryptoindustry, ”the foundation’s website says.
Note, at the beginning of the year, Kik announced that he intended to challenge the SEC decision on recognizing the project token as a security.
In the course of this trial, the startup and partners of the initiative intend to set a precedent in the context of applying the “new test Howie” to cryptocurrencies.
“For the future of the industry, we all need Kik to win. This case can help develop Howie’s new test and determine how cryptocurrency will be regulated in the United States. ”
The community has already called the initiative "one of the most significant stories of the year."
This is the most important storyline in the world of crypto securities law in 2019; far more significant than any SEC guidance or proposed legislation. SEC keeps it in court? Respect to Kik for their aggressive stance. https://t.co/Csh8viwijj
– Jake Chervinsky (@jchervinsky) May 28, 2019
The site DefendCrypto emphasizes that the impending trial is crucial for the entire digital currency industry.
“Everyone always asks:“ What will the SEC think? ”Instead of asking:“ What is better for users? ”, Says the foundation's website.
Recall that last year the Commission began a large-scale trial of ICO-projects.
On BlockchainJournal there is a separate material about the difficult relationship between the SEC and cryptocurrency industry.
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