The 2019 season of The Great Blockchain Reality Show has barely started, and the writers are already pulling out the stops; on Monday, the man behind one of the biggest crypto sales of the 2017 bubble declared that he would “fight back” against the U.S. Securities and Exchange Commission. The outcome of the battle could move us much closer to answering one of the most important questions in the realm: whether it’s possible for a company to issue a cryptocurrency that’s not subject to the strict rules governing securities.
The SEC’s opponent in this epochal showdown is Ted Livingston, CEO of popular messaging app Kik. Kik pre-sold a cryptocurrency called Kin in 2017, raising $100 million in an Initial Coin Offering, or ICO. In a blog post Sunday, Livingston revealed that the SEC is poised to bring action against Kik for securities law violation—and that Kik plans to fight classification of the Kin cryptocurrency as a security. Though Livingston doesn’t explicitly declare that Kik would take the SEC to court, there’s a strong implication.