Coinbase, Circle, 0x, Ripple and other companies stood up for Telegram. SEC went all-in

The Blockchain Association, which unites Coinbase, Circle, 0x, Ripple and other well-known companies in the crypto industry,supported Telegram in proceedings with the US Securities and Exchange Commission (SEC). CoinDesk reports this.

Acting as Amicus Curiae, the Association issued expert opinions stating that Telegram had made enough efforts to meet the requirements of the SEC.

443862589 Blockchain Associ… by ForkLog on Scribd

The Association is confident that the lawsuit and the actions of the regulator can harm not only Telegram, but also the cryptocurrency market as a whole.

“The court should not block for a long timeplanned and eagerly anticipated product, intervening in an agreement between qualified parties. Such actions may harm investors whose interests are to protect securities laws. ”, - the document says.

The Association’s appeal also states thatCompanies working with blockchain and cryptocurrencies have long been unable to get clear and understandable guidance from SEC on how to conduct activities in their field. At the same time, the regulator’s claims to Telegram only aggravate the situation.

“SEC lawsuit raises new questions aboutwhether companies are prohibited from raising funds from qualified American investors, according to established regulatory standards, to create blockchain networks ”, - added representatives of the Association.

In conclusion, The Blockchain Association asks the court to “reject the SEC’s argument that the non-existing Gram tokens were securities at the time of the conclusion of the agreement to purchase them.”

SEC goes all-in?

The regulator published a memorandum expressing doubts that the Telegram Open Network project is being implemented at all. In particular, the SEC claims that there is no evidence of its readiness.

gov.uscourts.nysd.524448.98.0 by ForkLog on Scribd

According to the Commission, if something has been done by Telegram, the product most likely will not correspond to what is indicated in the white paper and the documents provided to investors.

Key points formulated by the SEC:

• Telegram decided to create a blockchain designed toreplace Visa and Mastercard, however, the company did not show either the Commission or investors the results of its work. There is only technical documentation describing the principles of the project.
• The team of Pavel Durov created really complex services, but she has no experience in implementing blockchain projects.
• Telegram did not give an answer to the exchanges on the placement of GRAM tokens, while promising investors the sale of tokens for fiat.
• There is no information on the readiness of individual TON ecosystem services.

In general, SEC's arguments look like a set of skeptic opinions.

ForkLog previously reported that the US Chamber of Digital Commerce has filed a petition for amicus curiae in the SEC case against Telegram.