Ted Livingston, CEO of Kik and founder of the Kin Foundation, has announced the launch of defendcrypto.org with a funding of USD 5 million to contend with the US Securities and Exchange Commission (SEC) over better regulations for cryptocurrency.
“We all know [crypto] is the next mega-trend of technology and by always having to ask ourselves, ‘What will the SEC think?,’ we are giving ourselves a fundamental handicap to compete on the global stage.”
He further stated:
“Enough is enough, we need clarity, and the only way we’re going to get clarity is if we go to court, so let’s do that.”
Timeline of events:
About two years ago, the social media platform Kik raised a whopping USD 98 million for its kin token. However, Kik was swept by a wave of subpoenas that the SEC sent out to the crypto ventures last year. Kik was further notified that the SEC would issue an enforcement action against it for possible infringement of US security laws. In response to this notice, Kik and Kin made a compelling Well’s submission through which they publicly let SEC know that they would take it to the court.
The foundation is hoping that the lawsuit will eventually lead to a new version of the Howey test as a basis to determine when crypto tokens will be classified as securities. If successful, this will create a huge impact on the cat and mouse game of crypto regulation in the US perhaps even affecting the industry worldwide.
The website states that “Kin has already spent over USD 5 million and is committing another USD 5 million of BTC, ETH, and KIN in a Coinbase account to fight this out on behalf of the industry”. The defend crypto funds will ensure that things are done in a rightful manner and the users are also allowed to contribute for this cause. On the completion of the court procedure, the remaining resources will supposedly be allocated to a non-profit organization to make new innovations in the industry.
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