Kik Interactive Inc, Canadian messaging app company is planning to take the SEC to court because of a potential enforcement action against Kik’s 2017 initial coin offering (ICO) of the Waterloo, Ontario-based tech company’s proprietary cryptocurrency, Kin.
A Kik representative said the stakes are high for the whole cryptocurrency industry:
“We are unsure of how the Commission will vote, but we believe that any enforcement action against Kik, Kin, and the foundation would be detrimental to the entire cryptocurrency industry.”
“This was after Jay Clayton said “I believe every ICO I’ve seen is a security.” That includes almost every cryptocurrency, from Ethereum on down.
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.“