Now the company has run into potentially more severe trouble, this time with the U.S. SEC, which has deemed ICOs as securities. In an interview with the Wall Street Journal, Kik CEO Ted Livingston said the U.S. regulator isn’t accusing the company of fraud, but because Kik failed to register the ICO with the SEC, they didn’t give investors the proper information. Also, the Kin token is considered a security under the 1934 Securities Exchange Act.
Livingston, however, asserted that the regulator’s interpretation of the law is entirely wrong, stating: “On page 11 of the 1934 Securities Exchange Act, the very act that created the SEC, it explicitly states that the definition of a security ‘shall not include currency.’” Kin, according to its website, “has monetary value, which means it can be bought and sold for real money.”
via Kik has had enough, but can it kick back at SEC? – CoinGeek.
