U.S. court extends Gram token sales ban, promises end-of-April verdict

U.S. local time today (February 19), U.S. District Court Judge P. Kevin Castel today (February 19) local ruling in the SEC and Telegram case.

According to coindesk, New York's Southern District Judge Kevin P. Castel delivered an opening speech on Wednesday's trial, urging Telegram and the US SEC to consider the "economic reality" of the $ 1.7 billion token sale. Castel also asked about the economic basis for Telegram to lock the first round of purchase agreements, whether the Gram tokens sold in the first round have utility, and whether the TON blockchain can be run at launch. Telegram's lawyer assured the judge that 36 validators on Telegram's testnet blockchain showed that the decentralized community was sufficiently interested in the blockchain. In contrast, the SEC focused on Telegram's alleged illegal behavior, stating that the company's way of selling products to qualified investors did not meet Reg D standards. Before the hearing began, Telegram submitted the testimony of former Telegram Chief Investment Advisor John Hyman, as well as materials and documents from abroad.

Telegram lawyer Alexander Drylewski said that the US SEC's Howey test does not apply to digital assets unless a commitment is made to manage these assets, which means that Gram will no longer be a security when the TON blockchain is launched.

Finally, a New York court has ruled to extend the U.S. Securities and Exchange Commission's (SEC) restrictions on Telegram's open network blockchain project to sell Gram tokens. Judge Kevin P. Castel has made it clear that he will later decide on the validity of the measure and assured Telegram's lawyer Drylewski that the case will be judged by April 30.

The Scallion article mentioned that the SEC previously claimed that the $ 1.7 billion raised by Telegram for Ton from investors was an unregistered securities offering and was therefore illegal. If the court finally decides that the operation of Telegram is illegal, Telegram will face a huge fine and it will also need to repay the investors who participated in the project. However, if Telegram can finally win the case, it will undoubtedly greatly promote the startup process of the Ton network. As a strong competitor once considered by the market to be on par with Libra, Telegram is expected to become a huge "achievement" for the entire blockchain industry once it wins.

If the SEC wins in the end, it can be regarded as a signal that the U.S. government has faced the long-standing issue of token issuance. The method of handling this case may become a global "template case" to be promoted. Cryptocurrencies The market is likely to usher in a new round of regulatory boom. And if Telegram finally wins, this is expected to become another "milestone" in the history of cryptocurrency development.