- The U.S. Securities and Exchange Commission is requesting more time to make a decision on a pending Wilshire Phoenix Bitcoin exchange-traded fund (ETF)
- Kik will shut down its core messaging service due to the SEC Trial, KIN will continue to grow its Strength and continue to fight against SEC.
- The US SEC charged Jonathan Lucas, CEO of an online adult entertainment marketplace, with running a fraudulent initial coin offering (ICO) scheme.
Recently, US Securities and Exchange Commission(SEC) has hit crypto market with various of strict actions indicating its hostile response to the sector in the time coming and which is likely to probe a question in the common minds whether SEC is rebelling crypto as its unfavorable and harsh actions witness the same.
SEC Delays Decision on Wilshire Phoenix ETF Proposal
SEC has started proceedings to examine and figure out whether it should approve a proposed bitcoin exchange-traded fund (ETF). The SEC has begun analyzing the proposed rule change to allow NYSE Acra to list and trade shares of Willshire Phoenix’s Bitcoin and Treasury Investment Trust, as revealed to a public filling published on late Tuesday. SEC Chairman Jay Clayton recently accepted that bitcoin market is progressing and has made steps to mature but there is still ‘’work to be done’’ before a bitcoin ETF can be approved pointing towards the profound analysis they would be striking the market with.
SEC listed various questions for the general public inviting than for suggestions and opinions that the CME bitcoin reference rate is not susceptible to manipulation. This had initiated in the month of June and according to the reports, six individuals had submitted responses with positive as well as negative feedback for allowing a bitcoin ETF.
Proposed by Bitwise Asset Management, a bitcoin ETF’S fate whether it is approved or disapproved by the SEC will be answered in the middle of October. The company has already filed a number of reports with the SEC in an effort to persuade the latter in its favor stating that bitcoin market is mature enough to support such a product. For now, it is not clear whether the regulators believe it but BTC constantly seems to strike it by clearly stating it that it needs to modify and make a number of improvements before bitcoin ETF is discussed. Regarding the Wilshire Phoenix proposal, the SEC has a legally mandated 35 days from Tuesday to make a decision.
SEC Slaps Kik with a Lawsuit: Kik messaging app to Shut Down
Kik will shut down its core messaging service, Kik interactive CEO Ted Livingston announced on Monday and blamed SEC for the same. In addition to shutting down the app, the company would also shrink its crypto operations to just 19 core developers with special attention on Kik’s cryptocurrency as revealed by Livingston.
"Moving Forward Boldly with Kin" – by Ted Livingstonhttps://t.co/uzQg1vdfuT
— Kin Ecosystem (@kin_foundation) September 23, 2019
‘’After 18 months or working with the SEC the only choice they gave us was to either label Kin security or fight them in court’’, said Livingston and he further added ‘’so with the SEC working to characterize almost all cryptocurrencies as securities we made the decision to step forward and fight.’’ Since the SEC allegations in June, Kin’s token has dropped from $0.000036 to $0.0000105.
The reason for the dispute between Kik and SEC was over the initial coin offering of its KIN token. The ICO had raised $100 million, which the SEC claims were an unregistered securities offering.
Livingston also revealed that the core developer team is working towards developing the KIN token while Kik app is shutting down.
‘’Kin is a currency used by millions of people in dozens of independent apps. So while the SEC might be able to push us around, taking on the broader Kin Ecosystem will be a much bigger fight. And the Ecosystem is close to adding a lot more firepower.’’
The reports were confirmed on Kin Foundation’s official Reddit page where a spokesperson from the foundation wrote ‘’I can confirm a restructure is happening.’’
SEC Charges Adult Entertainment Token Platform With 2017 ICO Fraud
The US SEC charged Jonathan Lucas, CEO of an online adult entertainment marketplace, with running a fraudulent initial coin offering (ICO) scheme.
‘’Fantasy Market is a role-playing performance marketplace for live, client-controlled digital platforms, through the use of our tokens, you can control what the performers say and do during the show.’’
– the Linkedln profile says.
According to the complaint, all the team members in the company are fictional except Lucas, also many false claims had been made by the company in promoting its ICO.
Taking place from September 3 – October 16, 2017, the ICO aimed to raise $ million, with 125 million FMTs for sale and further pricing each token at 20 cents, according to token’s white paper. In the six week period, Fantasy Market raised about $63,000 in cryptocurrency from more than 100 investors in its fraudulent offer and sale of unregistered digital securities.
The SEC said Lucas promoted the sale of FMTs in a misleading way. Company’s claims like there had been a private pre-sale for accredited investors or the company had verified that its investors were accredited were all false.
The company had made a further fake statement that all of its transactions are secured because users could only purchase the token with bitcoin or litecoin on ERC-20 blockchain, which was not the case. On the contrary, no token was ever issued and money raised went to marketing rather than building the product.
Thus SEC’s stern strategy is going to fall heavily on the crypto market and its rigorous executions definitely predict that the time coming is going to be tough for the cryptoverse as every activity they do will be traced by the profound vigilance of a ‘’radar’’ called SEC.