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SEC Suggests Ethereum is Usable Currency in Dramatic Kik Lawsuit

Greg Thomson
It's possible to deduce that Ethereum's ether is spoken of as a transnational currency by the SEC. It's certainly not a security. | Source: Shutterstock

By CCN: Ethereum’s status as a legitimate transactional currency was confirmed once again this week – by none other than the Securities and Exchange Commission.

The SEC’s recent lawsuit against Kik (KIN) details the particulars of the KIN token sale – the public phase of which was carried out against ETH, as opposed to the U.S dollar.

Throughout the official court document, the SEC appears to accept Ethereum as legitimate legal tender. This adds to similar noises made by the regulatory body in 2018, when SEC officials said Bitcoin and Ethereum were clearly not securities.

Ethereum: Definitely Not a Three-Dollar Bill

The conclusion of the SEC lawsuit against Kik sums up KIN’s status as a security in the eyes of regulators. It also goes some way to confirming the SEC’s acceptance of Ether as a real currency. The lawsuit states:

“Investors’ purchases of Kin were an investment of money, in a common enterprise, with an expectation of profits for both Kik and the offerees, derived primarily from the future efforts of Kik and others to build the Kin Ecosystem and drive demand for Kin. Consequently, Kik’s offer and sale of Kin in 2017 was an offer and sale of securities.”

Kik, SEC, ICO

Canadian messaging giant Kik is gearing up for a fight against the United States’ primary securities regulator. | Source: Shutterstock

The document does differentiate between the presale and public sale of KIN – which were conducted with USD and ETH respectively. However, when referring to Kik’s legal repercussions for issuing its security token, Ethereum and U.S dollars are used interchangeably.

Read the full story on CCN.com.