Blockchain Association supports Telegram in litigation with SEC

The human rights group Blockchain Association issued an expert opinion on the legal proceedings initiated by the SECa trial with Telegram, speaking in support of the messenger.

In its conclusion sent to the Southern CourtNew York County, the Blockchain Association disputes allegations made by the U.S. Securities and Exchange Commission (SEC) against Telegram in October 2019. The regulator tried to ban companies from selling Gram tokens to early investors, claiming they were unregistered securities.

According to a statement by Blockchain attorneysAssociation, SEC has not yet clarified the interpretation of the concept of “digital assets”, and in which case they can be considered securities. Therefore, if the court decides that the Gram tokens were such at the time of the conclusion of the purchase agreement, this could negatively affect the entire cryptocurrency industry.

“SEC has recognized that some digital assetsmay not be securities, but the status and the status of certain crypto assets may change over time, ”the Blockchain Association said in a statement.

Association claims sale agreementGram tokens comply with US securities laws, but the SEC "behaves strangely", because the model of this agreement was developed taking into account all the requirements of the Commission.

In addition, the Blockchain Association drawscourt's attention to the incorrectness of SEC statements, calling Gram tokens not yet issued “investment contracts”. This completely contradicts previous statements of the Commission that the token may not be considered a security before the launch of the network.

“Telegram funding model is consistentthe securities law, so the court should not impede the planned launch of the product by interfering in the agreement between the company and private investors, ”said the Blockchain Association.

Recall that the other day it was presentedexpert opinion of the Digital Chamber of Commerce, which calls on the court to distinguish between the concept of a digital asset as the subject of an investment contract and securities transaction.

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