Federal Court Rules Case in Favor of Crypto ICO Against SEC

Last week, the U.S. federal court ruled a case between the U.S. Securities and Exchange Commission (SEC) and a crypto initial coin offering (ICO) project called Blockvest in favor of the ICO project.

Marco Santori, the president and chief legal officer at Blockchain, said:

“The SEC brought an enforcement action against a company called Blockvest, alleging that Blockvest’s ICO was a securities offering. SEC asked the court for a preliminary injunction (an order freezing Blockvest’s assets, among other things) so it called a hearing on the evidence.”

The SEC failed to justify that the ICO in question was actually a security and the court refused to acknowledge the token as a security solely based on the distribution method of the asset.

Precedent For the Market

The unexpected decision of the federal court is not necessarily a loss for the SEC nor a huge victory for the cryptocurrency sector. As SEC chairman Jay Clayton said, most ICOs that investors in the market talk…