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Kik Interactive (Kin) Is Planning To Take The SEC To Court

28 January 2019 07:10, UTC

Canadian company Kik Interactive Inc plans to sue the U.S. Securities and Exchange Commission (SEC) in connection with a potential enforcement action against ICO Kin, which was held back in 2017. Kik CEO Ted LIVINGSTON told the Wall Street Journal about the upcoming legal confrontation and also wrote about it in his blog.

“This is the thing that everyone in the industry is dealing with, but nobody wants to talk about. For all of us to be able to continue hiring, innovating, and competing, we need to change that. This situation is not unique to Kik. There are dozens of projects at a similar point with the SEC. We all believe that this industry needs regulation, but we also believe that this is not the way to get it. ”
— the head of the company expressed his stance on the situation.

Ted Livingston opposes the SEC’s position that all tokens are securities, calling it the reason for the upcoming litigation. According to the CEO of Kik Interactive, the 1934 Securities Exchange Act, the very act that created the SEC, states that the definition of a security “shall not include currency.” He claims that Kin is a currency, not security: one can earn it and spend it on more than 30 apps in Google Play and iOS stores; users change Kin for goods and services. It was not offered or advertised as a passive investment opportunity — Kin is used as a medium of exchange, which, in turn, is a sign of currency.

Representatives of Kik believe its rebuttal, which is to be filed in civil courts, is valid and could set a precedent for the whole ecosystem.

Image courtesy of Medium