The U.S. Securities and Exchange Commission (SEC) filed a memorandum with the Southern District Court of New York stating that Gram tokens that Telegram plans to issue have no intrinsic value.
The SEC stated in the public document that "Telegram attempts to classify Gram tokens as 'commodities'. But Gram is not a commodity. Unlike gold, comic books, and donuts, Gram has no intrinsic value."
The SEC said that Telegram promised to sell Gram tokens only to qualified investors when it was first issued, but then if holders resell them, they will violate relevant rules.
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The SEC said, "Once Telegram delivers Gram tokens to initial buyers, they will be able to resell billions of Gram tokens to the public on the open market. Telegram and its branches will drive these sales on digital asset trading platforms. Once such a resale occurs, Telegram will complete its unregistered securities offering and billions of Gram tokens will be traded to different investors on multiple platforms. "The SEC therefore believes that the court should ban such behavior.
Telegram's token offering raised $ 1.7 billion in early 2018. The SEC sued the company in October 2019, claiming that Gram Tokens were unregistered securities and required Telegram to stop launching the TON blockchain. The first hearing of the case will take place next month. Earlier the SEC stated that Telegram's token sale was only a substitute for equity financing.
The Blockchain Association recently sent a letter to the Southern District Court of New York challenging the SEC's allegations against Telegram. The association believes that the SEC's interpretation of whether and when its digital assets are securities is unclear. As a result, the court's ruling on whether Gram is a security could affect the entire industry.
The digital chamber of commerce, another industry organization that previously supported the development of the blockchain, also wrote to the court, stating that it did not attempt to prove whether Telegram's $ 1.7 billion Gram token sale was a securities transaction. The organization aims to ensure that the regulations applicable to digital assets are sufficiently clear.
Author Xiu MU This article is from bitpush.news. Please reprint the source.