A U.S. judge has refused to apply the Telegram reasoningwhich would significantly widen the applicability of the Howey test for whether a coin offering constitutes a security or notto the ongoing Kik litigation.
A number of cases are making their way through the U.S. courts at the moment concerning the alleged offering of unregistered securities in the form of digital assets. The cases typically involve the creation and offering of the rights to digital tokens to investors in return for capital, and the question is whether or not this offering counts as a security for the purposes of the U.S. Securities and Exchange Commission's (SEC) rigorous framework governing the offering of securities.
