Battle between Telegram, SEC May Push Crypto Legislation, Blockchain Association Says

The New York Judge Kevin Castel claims that Telegram’s TON Grams are securities. But Blockchain Association’s (BA) Kristin Smith put out the fact that Grams only arrive under the security name while being not a security. BA filed the letter of support to the court earlier this week.

During a recent interview with Coindesk, Blockchain Association executive director Kristin Smith claimed that not everything is lost for Durov brothers. She believes that the Telegram team did an offering according to financial advice from the American regulators (including the SEC). Per Kristin, the outcome of the case is useful in putting the pressure on Congress regarding blockchain deals:

“I think the outcome of this case can help put pressure on Congress to step in a write a new law that would provide a path forward.”

She adds that there are three ways of getting the proper blockchain legislation from the American government:

“We hope that instead of getting clarity through the court decisions, the SEC through the rulemaking process or Congress through legislation, will provide a really clear pathway for such projects to be developed and launched…

…there will be an appetite among lawmakers to find ways to support innovations and growing industries as we get to the recovery, and I think we’ll see some positive legislation when that happens. When there are national and international challenges like the coronavirus, it’s ultimately the innovation that helps get the economy out of the crisis and moving again.”

It’s worth noting that the classic banking system has some flaws, like huge fees or substantial waiting times of the regular payments. Especially, when it comes to cross-border payments. Salvation comes as soon as legitimate blockchain solutions step in, blockchain adherents say.

‘Not a Flamethrower’ Argument Didn’t Work with Judge Castel

The New York District Court Judge Kevin Castel twice refused to grant Telegram the ‘right to distribute’ tokens…

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