First off some background, the SEC has been after Kik and Kin over their ICO since they first raised funds.
However, instead of settling, Kik and Kin have struck back and decided to argue that not only is Kin not a security, but that the SEC is actually stifling innovation.
Or more specifically, Kik / Kin founder Ted Livingston expressed [paraphrasing], “the lack of clarity from the SEC and the constant threat of penalty is causing the US crypto innovators to live under a cloud of fear and is hindering our ability to compete on the global stage.”
The goal of this fund, and the goal of Kik / Kin, is twofold.
First, the idea is to win the court case and set a precedent.
Second, the idea is to help push legislation that better defines crypto and fundraising mechanisms forward.
Fighting the SEC is an uphill battle, but honestly the lack of clarity is for sure stifling our industry, so nice to see someone with the guts to put up a fight.
NOTE: Take a look at Kinit. It is an app that lets people earn Kin for filling out surveys and such. This only works if Kin is not a security… and that is the problem. The SEC only wants to see the investment side of crypto, they don’t want to see the many other use cases of crypto tokens. In short, the narrow view of the SEC is threatening to stifle innovation by those who care about US regs… you know, like everyone in the US and the rest of the west who interfaces with us. 🙄