In the past, the SEC has ruled on cryptocurrencies stating that as long as the currency is decentralized it is not a security. William Hinman, head of the Division of Corporation Finance at the SEC, has previously stated that Bitcoin and Ethereum are not securities because they are decentralized, meaning there is no third party playing a determining role in the businesses or purchasers who expect returns on their investment.
Speaking with BetaKit earlier this week, Livingston said that he considers Kin to be decentralized but the crypto would likely face intense scrutiny from the SEC when determining whether it’s sufficiently decentralized or an investment opportunity (i.e. securities).
“We are very confident that if a case were to be authorized, that we would win,” he said. “To us, the facts are very clear. That’s why we published them. The SEC doesn’t get to determine what’s a security and what’s not, the courts do that.”
via As SEC files suit, Kik’s Ted Livingston argues loss would be “disastrous” for crypto | BetaKit.
