Following Kik’s Challenge of SEC in court over its KIN ICO, Weiss Ratings has observed that the decision of the court concerning the case will be of great impact on other cryptocurrencies that have similar underlying technology. According to a post on Weiss Ratings Twitter page,
“Messaging app #Kik is going to court after #SEC deemed its #ICO to be an unregistered security. The outcome will set the precedent on how these tokens are regulated. This is similar tech to that of #XLM and #XRP, so the final result may affect these as well.”
A fight to liberate ICOs?
The SEC has been quite strict on ICOs of recent, closely monitoring their activities. While the SEC considers this an attempt to protect investors within the cryptocurrency space, companies running ICOs consider it a fight against their business.
Kik is this time saying enough is enough as the SEC says Kin, a token owned by the company is not a registered investment. If Kik gets to be favored by the court, other crypto companies with their tokens may just have a slight relief from SEC and not be subject to the same rules as conventional investments. On the other hand, if they lose, well, that will be another story entirely.
What may happen to cryptocurrencies
The cryptocurrency industry has been in the bear market for several months now starting from 2018. Currently, none of the top ten cryptocurrencies are in the green because of another bout of decline that hit the market earlier today.
Many in the crypto community believe this could be solved by bringing Bitcoin ETFs into the arena. The approval, however, has been a long-standing struggle. Is it possible that Kik’s possible victory in court may also pave way for a bitcoin ETF approval soon?
The outcome will be really interesting to find out and the entire industry will be watching with much interest to see how it unfolds.
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A cryptocurrency enthusiast, author, and investor with high motivation in cryptocurrency/blockchain research and writing. He loves birdwatching and traveling. Follow him on Twitter at @Ponvangbu