Kik Gearing Up For SEC Battle To Define Regulatory Reach – WSJ Reportbr>
Kik Interactiv, a social media startup based in Canada, is mounting a legal challenge in the US courts that will determine the future of cryptocurrency regulation.
The Wall St. Journal reports Kik’s plan centers on an SEC ruling on its 2017 initial coin offering. The SEC believes Kik creatd an unregistered security when it sold $100 million in Kin, its digital token.
The case could set the rules on how much the SEC can regulate the ICO market. While the SEC is not claiming fraud with Kik, it contends that the same rules apply to cryptocurrency as they do for stocks and bonds, requiring registration and an agency review of other paperwork before an offering.
Kik claims that Kin is a utility token for developers, rather than a security. The SEC has so far declined comment.