Federal Court is in Favor of Digital ICOs that are Against the SEC

Recently, the SEC took legal actions against a blockchain investment company by the name of Blockvest. They claimed that Blockvest was offering ICO securities, therefore the companies assets and all transactions became frozen. However, the SEC was not able to justify that the ICO was in fact a security, and the federal courts refused the SEC’s claims. The federal court’s decision is not a loss for the SEC, but it is not a win for the digital asset market either. The outcome of the case did set a precedent for the market, but with that comes technicalities for the cryptocurrency market. Investors in ICOs and the SEC need to be more cautious when it comes to filing lawsuits against ICOs, as courts need specific information that describe the nature of the asset being a security. In turn, confirming whether the method the asset was brought into the market makes it unaffected. It is now becoming more difficult to sue an ICO.

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