Regulatory Series on Cryptocurrencies: US SEC Sues Kik For Unauthorized Security Token

The US Securities and Exchange Commission (SEC) and its staff “have spent a significant amount of time” focusing on the blockchain and crypto-assets with a slightly reluctant mode and that is a trend lingering currently.

On Tuesday, SEC sued Kik Interactive Inc. in New York federal court alleging it conducted an unauthorized ICO activity when it offered $100 million worth of its cryptocurrency Kin in 2017, $55 million of that was bought by the U.S. investors.

Generally, the US regulator seemed little meticulous on the Bitcoin’s possibilities by suspending a couple of trading of Bitcoin projects, such as bitcoin generation (BTGN), the first publicly traded cryptocurrency exchange and bitcoin ETFs applied by Winklevoss, etc.

For now, the commission has filed a lawsuit against Kik Interactive Inc. alleging that the social messaging firm turned crypto company breached securities laws when it held its $100 million ICO in 2017.

On the contrary, Kik contests that it has struggled to abide by the SEC regulation from last one and a half years, end up spending over $5 million in this process. 

While the respondent (the company) beams up with the optimism that the verdict of the lawsuit likely to persuade the regulator to give in the clarity about the definition as to what exactly is considered as a security.

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards -22 levels (which is mildly bearish), while hourly USD spot index was at -53 (bearish) while articulating (at 08:45 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex