On Feb. 19, U.S. District Judge Kevin Castel of Manhattan will hear competing motions for summary judgment in the Securities and Exchange Commission’s most significant enforcement action to date against a blockchain developer. The SEC will argue that entrepreneurs from the encrypted messaging app Telegram breached securities laws when they raised nearly $2 billion to develop a new blockchain platform. Telegram will counter that it wasn’t required to register its offering – and that the cryptocurrency tokens investors will receive are not in the SEC’s purview. Blockchain industry groups, as I told you last month, filed amicus briefs in the case, pleading with the SEC to provide clearer regulations for digital assets and to set out a better-defined path to launch blockchains.
It turns out that at least one SEC commissioner agrees with a lot of what Telegram and its backers have said.
‘Enforcement 40’ for 2020
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