In March 2020, a Southern District of New York court issued a significant decision in Securities and Exchange Commission v. Telegram Group Inc. et al., strengthening the U.S. government’s efforts in cryptocurrency enforcement – an area that is largely unsettled. As we wrote in our article discussing that decision, Judge P. Kevin Castel’s opinion is potentially groundbreaking for the token industry – and the SEC’s enforcement efforts in this space – because the court focused on “economic reality” in piercing through contractual representations and warranties to decide whether a token sale should be regulated under the securities laws.
Click here to read the full GT Alert, “Another Significant Cryptocurrency Decision: SEC v. Kik Interactive Inc. and Token Offerings Under the Securities Laws.”