The largest US cryptocurrency company Coinbase and startup Kik announced the launch of a special fund to cover legal costs in the proceedings with the US Securities and Exchange Commission (SEC). This was announced by CEO Kik Ted Livingston, writes Unchained.
The Foundation was named DefendCrypto, and the partners of the initiative were the startup Circle, the platform ShapeShift, the analytical portal Messari and the non-profit organization for the protection of free Internet Fight for the Future.
The Coinbase custody service will be used to store the assets of the fund. At the moment, Kin has already allocated over $ 5 million in favor of the fund in BTC, ETH, KIN and other cryptocurrencies.
The startup also encourages community members to join the initiative. If the amount of funds raised exceeds the legal costs of the proceedings with the Commission, they will be directed to other support for other projects.
We need to let the SEC know that we won’t be pushed around anymore. It is time to Defend Crypto.
At the beginning of the year, Kik announced that he intended to challenge the SEC decision on recognizing the project token as a security.
In the course of this trial, the startup and partners of the initiative intend to set a precedent in the context of applying the “new Howey test” to cryptocurrencies.
For the future of crypto, we all need Kin to win. This case will set a precedent and could serve as the new Howey Test for how cryptocurrencies are regulated in the United States. That’s why Kin set up the Defend Crypto fund to ensure that the funds are there to do this the right way. Kin has already spent over $5MM and is committing another $5MM of BTC, ETH, and KIN in a Coinbase account to fight this out on behalf of the industry.
DefendCrypto emphasizes that the impending trial is crucial for the entire digital currency industry.
When we speak to people in the industry, we need to stop living under this cloud of fear, what will the SEC think? What will the SEC think? Because 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. 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.
Founder, Kin Foundation
Last year, the Commission began a large-scale investigation of ICO projects.