Telegram is now being supported by the Blockchain Association in its long-running battle with the SEC. Long story short, the SEC is accusing Telegram of holding an initial coin offering without registering themselves with the company. The ICO was blocked by the SEC in October and worth $1.7 billion at the time.
However, there is more to the story. For a while, the encrypted application developer had been trying to contact the SEC about how they may proceed with their ICO. This sudden lawsuit surprised Telegram for sure, with the company stating at the time:
“We were surprised and disappointed that the SEC chose to file the lawsuit under these circumstances, and we disagree with the SEC’s legal position.”
Now, the Blockchain Association, an association of leaders and enthusiasts from all over the world concerning blockchain and cryptocurrencies, has filed amicus curiae in support of the company.
The Association, which is made up of 23 companies, goes into the fact that the blockchain is important and that big companies like Wal-Mart and Amazon are looking into it. The group then goes into the fact that the SEC has clarified that only Bitcoin and Ethereum are securities, though cryptocurrencies that are securities can also eventually become non-securities, depending on policy changes.
On top of this, the document goes into the fact that the SEC has done next to nothing in terms of regulatory clarity and working with cryptocurrency companies to create better regulation, and essentially that this lawsuit against Telegram is unfair. We’ll have to see how this proceeds as the year continues.