No binary choice between innovation and compliance with the federal securities law
This is what it is: “Companies do not face a binary choice between innovation and compliance with the federal securities law”, Steven Peikin, co-director, U.S. SEC division of enforcement said in a statement announcing enforcement on Kik. Kik had raised $100 million via initial coin offering.SEC sued it for not registering the securities it sold via ICO.
The war in question is over the Securities and Exchange Commission’s contention that cryptocurrencies ought to be regulated like securities when they are offered in bulk sales through something called an initial coin offering. A failing-at-the-time Canadian messaging company called Kik raised $100 million this way in 2017 from U.S. investors. Tuesday, the SEC sued Kik, saying it should have registered its offering so that investors could be better informed on what they were getting themselves into. Kik disputes the charges.
Simply, make sure you comply with the law irrespective of the level of innovation you are bringing to the market.
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