Ted Livingston, Founder of the Kin messaging platform which raised roughly $98 million through an initial coin offering (ICO) in 2017, believes that regulatory uncertainty is one of the reasons why the U.S cryptocurrency industry has failed to reach its potential.
For the records, Livingston’s Kik is currently in a rumble with the U.S Securities and Exchanges Commission (SEC), after the regulators claimed that Kik’s ICO token sale conflicted with securities law.
It is based on the seemingly endless negotiations between Kik and the SEC and a possible enforcement action that Livingston spoke to Coindesk regarding the regulatory uncertainty delaying the growth of the industry.
He reaffirmed statements that his firm made in its answer to the SEC following the accusations of a securities law violation. Kik said then that the token they issued is a currency and as such should not count as securities according to U.S laws.
Livingston re-echoed those comments, saying,
“In the last month alone, over a million people earned kin from 40 different apps, from 40 different companies. Over a quarter million people used kin, making it the most-used cryptocurrency in the world, and they’re not even willing to say that’s not a security.”
The entrepreneur, next, detailed how the lack of regulatory uncertainty which the SEC had promised to provide a long time ago is slowing down innovation. He used as a yardstick the performance of leading U.S cryptocurrency exchange Coinbase.
According to Livingston, the firm’s battle to comply with regulations has forced it to play second fiddle to its primary competitor, Binance.
“You have companies like Binance, who look at what Coinbase does and say, ‘We’ll do that, but we’ll do it everywhere but the U.S.’ – and now Binance has replaced Coinbase as the top exchange in the world,” Livingston lamented.
Meanwhile, the regulatory uncertainty facing the U.S crypto industry continues. Yesterday, another top cryptocurrency exchange, Poloniex delisted nine tokens for U.S users citing concerns regarding the status of those cryptocurrencies as “securities.”