August 16th, 2019 | Finance Magnates
When it comes to reputation, where should the SEC draw the line?
Because the cryptocurrency industry is still so new, there have been a lot of ‘firsts’ over the last several years: the dawn of token sales (in all of their varieties), the first entry of big tech companies into the space; the assortment of power struggles and the new cryptocurrencies that have come with them.
There are also a lot of ‘firsts’ in a legal sense. The cryptocurrency industry is being inundated with court cases and regulatory activity, seemingly with increasing frequency; as such, a number of legal precedents for the industry are constantly in the process of being established.
One of the most signficant court cases so far this year is the battle between the United States Securities and Exchange Commission and Kik, a Canada-based messaging service that held an ICO several years ago.
The SEC has accused the company of holding an illegal securities offering–but not only that: the SEC has also used the court case to slanderously paint Kik as a desperate, irresponsible company that used its ICO as a quick cash-grab. Kik has fired back with a fierce legal defense, as well as a very public criticism of the SEC’s strategies.
But who’s in the wrong here? When it comes to reputation, where should the SEC draw the line between legal proceedings and private opinions? And how can securities regulations be equally and fairly applied when it comes to crypto?