SEC’s Win Over Kik’s ICO Seen Tamping Crypto’s Litigation Zeal

Companies that offered unregistered initial coin offerings will likely think twice about challenging the SEC after the agency scored one more court victory that put an ICO within its regulatory jurisdiction.

A New York federal court ruled Sept. 30 that Kik Interactive Inc.'s $100 million sale of “Kin” digital tokens in 2017 was a securities offering that must comply with Securities and Exchange Commission rules. The decision came about three months after Telegram Group Inc. agreed to an $18.5 million SEC fine to end litigation that had already scuttled its $1.7 billion ICO.

The SEC’s court wins, together with several ...