Former NASDAQ Lawyer Warns TON Against Going Rogue
Former NASDAQ vice chairman and assistant basic counsel warned the TON Community towards launching Telegram’s blockchain community till the 2nd U.S. Circuit Court of Appeals has its say.
Safe Harbor shouldn’t be on SEC’s agenda
Manny Alicandro, a New York City lawyer with huge expertise in conventional finance in addition to in instances involving crypto belongings, shared his considerations concerning the drastic plan put ahead by the TON Community with Cointelegraph. He famous that within the foreseeable future, all issuers should respect the Howey take a look at. This could solely change:
“… if the Three-year Safe Harbor proposal by Commissioner Peirce is ultimately approved. With that being said, Commissioner Peirce’s term expires in June 2020 and the proposed Safe Harbor is not on the SEC’s rulemaking agenda. In the instance that it is added and put out for public comment, this process can take years to seek final approval.”
No time for rash actions
Alicandro was referencing the announcement made by the TON Community that they could launch the fork of Telegram’s open-source TON blockchain, regardless of the unfavorable determination of the courtroom in its battle towards the SEC. According to the Community’s spokesperson:
“The community was ready for this (or another) scenario. We have several options, including the launch of TON by TCF [TON Community Foundation]. I will say more, no one (no one) can prevent the launch of TON”.
Also, Alicandro supposes that now shouldn’t be the time for rash actions:
“Telegram has already filed a notice of appeal to the 2nd U.S. Circuit Court of Appeals. I wouldn’t recommend that they do anything until the 2nd Circuit appeal is decided. There is no need for urgency, especially since the world is in lockdown because of COVID-19”.
On the opposite hand, Alicandro believes there isn’t any method for the U.S. authorities to forestall the launch of the decentralized open-source community since neither TON Labs nor the TON Community are primarily based within the U.S.
Tezos units precedent for Telegram?
As Cointelegraph reported on March 26, Telegram is searching for readability from the SEC as as to whether the injunction prohibiting the distribution of Gram tokens applies to all buyers in its Initial Coin Offering or simply U.S. residents. Alicandro believes that it applies to all, citing the Tezos case as precedent:
“The Court in Tezos performed an analysis of extraterritorially whereby Tezos had enough contact with the U.S. – server locations, marketing efforts made from the U.S. that the Court determined that it had jurisdiction over Tezos”.
With not one of the stakeholders seemingly prepared to compromise, this battle could get nasty.
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