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U.S. Judge Kevin Castel asked the Commodity Futures Trading Commission (CFTC) to express an opinion on whether Gram tokens are securities or “consumer goods”.
A judge in the Southern District of New York Circuit ordered CFTC lawyers to provide their own thoughts on the Telegram ICO in an upcoming trial or in writing. The question is whether Gram tokens are securities.
The US Securities and Exchange Commission (SEC) insists that yet unreleased tokens were sold to investors as securities, as users purchased them for the purpose of further profit. However, Telegram has a completely different opinion, arguing that after the release of Gram will only be internal TON platform tokens.
In a response statement, Telegram challenged these arguments, emphasizing that it had never positioned its tokens as an investment tool, and in all presentation materials it was indicated that the token's value proposition was to be widely distributed after the launch of the TON platform.
Previously, the CFTC stated that digital assets fall under the definition of “consumer goods,” however, the Commission’s lawyers have not yet expressed their opinion on the Telegram ICO. It is reported that the next hearing in this case was rescheduled from February 18 to 19 due to the delay in another trial.
A judge in the Southern District of New York Circuit ordered CFTC lawyers to provide their own thoughts on the Telegram ICO in an upcoming trial or in writing. The question is whether Gram tokens are securities.
The US Securities and Exchange Commission (SEC) insists that yet unreleased tokens were sold to investors as securities, as users purchased them for the purpose of further profit. However, Telegram has a completely different opinion, arguing that after the release of Gram will only be internal TON platform tokens.
Quote:
“Unlike gold, comics and donuts, that is, those common goods to which Telegram equates its tokens, they have no intrinsic value,” SEC said sarcastically in a court memorandum, insisting that according to the Howie test Gram tokens have the characteristics of securities.
“Unlike gold, comics and donuts, that is, those common goods to which Telegram equates its tokens, they have no intrinsic value,” SEC said sarcastically in a court memorandum, insisting that according to the Howie test Gram tokens have the characteristics of securities.
In a response statement, Telegram challenged these arguments, emphasizing that it had never positioned its tokens as an investment tool, and in all presentation materials it was indicated that the token's value proposition was to be widely distributed after the launch of the TON platform.
Previously, the CFTC stated that digital assets fall under the definition of “consumer goods,” however, the Commission’s lawyers have not yet expressed their opinion on the Telegram ICO. It is reported that the next hearing in this case was rescheduled from February 18 to 19 due to the delay in another trial.