A16z partner Katie Haun analyzes Kik vs. SEC cases: only the courts can tell us what the law is

Original title:Kik and the SEC: What’s Going On and What Does It Mean for Crypto?》

A16z & NBSP; Katie Haun

Translation: 0 x 33

Tencent backed instant messaging app Kik raised $150 million through an initial coin offering (ICO) in August 2017. In the previous few weeks, the SEC had issued guidance that ICOs could constitute an illegal securities offering, so it was no surprise to learn that Kik was one of many subpoenas the SEC issued last year for encryption projects. But we saw the SEC raise the stakes in November when it notified Kik that the program was being considered for enforcement action for violating U.S. securities laws. Why is this important? Because it could tell us how far regulators are willing to extend existing laws to include encryption projects.

Given how little information is available and accurate about what regulators actually do, I share some thoughts. And what might happen next for the industry. In December, Kik filed what is essentially a legal brief, part of the SEC's normal process of giving people a chance to present their views before recommending enforcement action against programs.

Now the 180-day period for the SEC to decide whether to take enforcement action against Kik is drawing to a close. We're not investors in Kik, but Kik makes an interesting argument in the process,Because they represent how the industry is responding to an emerging technology in which it is unclear what rules will apply and how.

& have spent First of all, what does the SEC do? How did the case begin? & have spent

The SEC is an independent agency within the federal government whose main function is to protect investors. To maintain a fair, orderly and efficient market order; Promote capital formation. To that end, the SEC's enforcement division has created a series of regulations that ensure compliance and have jurisdiction over individuals and companies both in the U.S. and overseas -- at least where overseas actions have a significant impact on the U.S. or where significant action is taken in the U.S.

Most SEC investigations begin with informal investigations -- also known as' MUIs' -- that the SEC can conduct without much reason. The first step in the informal survey isMake a document request, but whether or not the company or individual soliciting the document provides it is optional, not like a subpoena. In fact, during the MUI phase,

Welcome to join the official BlockBeats community:

Telegram Subscription Group: https://t.me/theblockbeats

Telegram Discussion Group: https://t.me/BlockBeats_App

Official Twitter Account: https://twitter.com/BlockBeatsAsia