The United States Securities and Exchange Commission (SEC) has responded to Telegram’s counterclaim, insistence that Grams are securities.

Preventing Telegram from additive violation

Following Telegram’s counterclaim on Oct. 16, the place the agency argued that its native crypto isn’t a safety and the preliminary cease and desist order must be denied, the SEC has responded with a brand new submitting inside the U.S. District Court for the Southern District of New York on Oct. 17.

In the doc, the governor not alone insists that Telegram has truly profaned the U.S. securities legal guidelines but additionally argues {that a} preliminary cease and desist order must be granted to forestall Telegram from additive violation, stressing that the corporate is prone to violate the regulation once more.

The SEC distinct that Telegram’s proposal to disclaim the cease and desist order will permit them to proceed to interact in offending conduct after 5 months, and put the burden on the governor to hunt one other short-term restraining order (TRO) from the court.

The securities’ governor states that it’s a rare non-justified request that power represent a waste of judicial and public assets and thus must be denied.

According to a TRO filed on Oct. 11, Telegram must be at a court hearing to in New York on Oct. 24.

Grams’ standing after TON launch doesn’t matter

In the submitting, the SEC reiterated that Telegram has profaned the securities legal guidelines by promoting Grams, that are “securities” beneath the Securities Act, to sure traders, together with consumers inside the U.S., with none in question exemption from registration.

The governor then refuted Telegram’s declare that Grams will only be a forex or good after the launch of the Telegram Open Network (TON), arguing:

“Defendants’ Opposition to this showing rests entirely on the conclusory allegation that ‘Grams will only be a currency or good’ and therefore not a security ‘once the TON Blockchain launches.’ […] whatever Grams were in 2019 or what they will be whenever Defendants decide to distribute them, Telegram’s mere assertion that Grams ‘will … be’ a ‘currency’ does nothing to cure the preceding violation of law.”

Yesterday, Cointelegraph conspicuous an deep report on Telegram’s case, offering key occasions and points crosswise the TON community and Grams.