Cryptocurrency organizations have always had a strenuous relationship with regulatory agencies because of the decisions made by the latter. The US Securities and Exchange Commission [SEC] remains one of the main governing bodies when it comes to crypto and was recently involved in a pushback with regards to Kik.
On 28 April, in spite of objections from the regulatory body, the New York District Court Judge allowed the Blockchain Association to file an amicus for the Kik-SEC case. The SEC had argued that the Blockchain Association had a vested interest in the matter and should not be allowed to participate in the decision-making process.
The Kik-SEC case had come to such a head that it captured multiple news headlines in the cryptocurrency industry. Judge Alvin K. Hellerstein of the Southeastern District of New York allowed the Blockchain Association to file an amicus so that there was no bias towards either party. The Blockchain Association has denied claims that its members have benefited financially from the case.
Blockchain Association Executive Director Kristin Smith said that the group was proud to execute the filing and would do whatever was necessary to resolve the situation. Members of the Organization also pointed out the hypocrisy in which the SEC considered the amicus to be a group counted as any other trade organization.Smith added that the SEC’s description of the brief was wrong and that the Association wholeheartedly supported the Judge’s decision. She continued:
“The Blockchain Association was proud to file its amicus brief in this matter, and we appreciate the opportunity to speak for the entire industry in supporting sensible regulation. The court system benefits from amicus briefs like ours that place the parties’ evidence and arguments in their broader context, a role played every day by associations, non-governmental organizations and advocacy groups in courts across America.”
At the moment, Kik is not a member of the Blockchain Association, but the relationship between the two dates back to 2019. The Association is currently managing the ‘Defend Crypto’ campaign launched by Kik in 2019, an initiative to raise funds for crypto organizations involved in SEC feuds. Kik contributed $5 million to the fund on their behalf, with another $2 million coming from external donors.
The SEC, at the other part, was against Kik because they believed that all Kin token sales were actually security transactions. Kik rebutted by claiming that all its sales were legitimate and that its public sale transactions were not securities in any form or structure. Since June last year, the legal battle between the two organizations has been going on with a final decision nowhere in sight.
Just recently, both Kik and the SEC filed oppositions to the other party’s motions for summary judgment. The two entities doubled down on their arguments and commented on the legitimacy of the information presented in the court of law. The SEC believed that the processes followed by Kin investors and an underlying common venture in the cryptocurrency industry was enough to swing the case towards their side.