Circle, one of the prominent global companies active in crypto financing, came forward to extend its support to the Defend Crypto campaign started by the Kin Foundation. Circle announced its support to the Foundation’s initiative with an official tweet dated 28th May 2019 saying that as an organization they have always been vocal regarding the need for regulatory clarity in the digital currency space.
We’ve been vocal about the need for regulatory clarity so crypto can flourish in the United States and fortunately we’re not alone in this fight.
— Circle (@circlepay) May 28, 2019
Circle also stated that once the regulatory clarity is achieved, it would be a breeze for the crypto industry to flourish in the United States. The company also expressed that it is not the only entity to have joined this battle; Poloniex Exchange has extended its support to the cause as well.
Poloniex Exchange, founded in 2014, is a leading cryptocurrency exchange platform that allows traders to buy, sell as well as store their crypto assets. The platform offers support to more than 60 crypto assets, including ETH, BTC, and many other top altcoins.
For those who came in late, Kin Foundation has been hitting the headlines recently for having started the Defend Crypto fund to fight against the SEC (the United States Security and Exchange Commission). Kin Foundation, which is dedicated to ensuring fair growth of its decentralized Kin Ecosystem, has already seeded 5 million dollars for its DefendCrypto.org initiative. The fund has been put aside to prepare for the lawsuit and introduced on the platform of Coinbase Custody.
The Foundation itself raised this initial funding in the form of Kin, ETH, and BTC. However, now they are calling on other crypto entities as well to make their contributions to the fund. That’s because they feel 5 million dollars won’t be sufficient to take the SEC head-on in court.
According to Ted Livingston, Kin Foundation’s Founder and Kik’s CEO, a lawsuit will eventually lead to the creation of an all-new Howey Test that fairly determines which digital currency tokens can be considered as a security. Livingston also feels that the Commission should make its stance clear regarding the matter which it hasn’t done until now. Continuing further, Livingston stated that the only way to get clarity on this matter is to go to the court.
The crypto community is aware of the battle between the Commission and the Kik and Kin Foundation that’s been going on since 2017. The messaging service Kik had launched its crypto project called Kin and raised 100 million dollars in the ICO for its Kin token. As per the SEC, this was the instance of unregistered security issuance. However, Kik and Kin deny that their token doesn’t fit in the criteria of a security and have presented thorough reasons for the same.
Kin has also stated that they want innovation to be put on priority rather than regulation. They are ready for the court battle in the hope that a stronger foundation for crypto innovation is built in the US so that the other crypto firms don’t have to go through such battles in the future.
Meanwhile, the campaign has been garnering immense support on Twitter from big crypto players. Fred Wilson, Union Square Ventures’ co-founder, tweeted yesterday saying,
"It is my hope that DefendCrypto will be an inspiration for the many other important crypto projects that are silently battling with the SEC to come public and raise capital from the crypto sector to fund these efforts."https://t.co/YYoZj0F9LH
— Fred Wilson (@fredwilson) May 28, 2019
Eric Voorhees, the CEO of ShapeShift, also announced his support to the Defend Crypto fund through Twitter.
Kin establishes $5 million https://t.co/siUfXXPZgc fund to take on the SEC. Support from @coinbase, @Circle, @MessariCrypto, @ShapeShift_io, @fredwilson and others. #bitcoin #ethereum #crypto https://t.co/uGt63PCkiZ
— Erik Voorhees (@ErikVoorhees) May 28, 2019