Telegram responded to the US securities regulator and argued that Gram, the native cryptocurrency for the Telegram Open Community (TON), just isn’t safety.
Telegram requests refusal of SEC's order
In a October 16th filing, Telegram urged the US District Court docket for the Southern District of New York to refuse the US Securities and Alternate Fee & # 39; s (SEC) request for a provisional provision.
As well as, the workplace requested the courtroom to submit an order that upholds the established order with regard to the supply, sale or distribution of Gram.
The depot is launched two days earlier than the Telegram ordered deadline to file a counterclaim on October 18, the corporate stated within the doc.
"Emergency" from SEC & # 39; s personal manufacturing
In reference to the current of the SEC emergency action towards Telegram on October 11, the submission doc claims that "the fast utility of the SEC is an" emergency "that he himself has created."
Repeats his earlier one progress, Telegram's Authorized Counsel wrote that the corporate has been voluntarily concerned with the TON Blockchain and Grams Authority for the previous 18 months, however the Authority has not offered clear suggestions on this. Specifically, Telegram emphasised that the authority would have determined to do that as a result of Telegram promised to repay its traders if TON doesn’t launch on October 31.
The deposit is:
"Even though the SEC knew for 18 months that if the TON Blockchain weren’t launched on October 31, 2019, Telegram could be obliged to repay the collected funds underneath its agreements with personal consumers, the SEC by no means requested (i) that Telegram has introduced the launch of the TON Blockchain, (ii) by no means knowledgeable Telegram of its intention to hunt provisional services, and (iii) waited till the eleventh hour to submit an ex parte utility for the launch of Telegram. "
Gram is "solely a forex or commodity"
Within the doc, Telegram has pushed the American securities regulator by claiming that its Gram token just isn’t an impact. The corporate harassed that Telegram has already handled the personal placement as a securities supply primarily based on legitimate exemptions for registration underneath the Securities Act of 1933. As soon as the TON blockchain is launched, the grams will solely be a forex or commodity equivalent to gold or silver, however no security, the corporate wrote.
Telegram just isn’t an ICO
Telegram additionally thought-about the anomaly of the connection of Gram with merchandise for the preliminary coin providing (ICO), and said that Telegram by no means issued a safety to the general public via an ICO. Telegram defined that as a substitute of doing an ICO-like product, the corporate entered into personal buy agreements with a restricted variety of consumers that offered for the long run cost of Gram forex. The corporate wrote:
"Not like different digital property that have been provided to most people via so-called Preliminary Coin Choices (" ICO & # 39; s "), Telegram didn’t supply securities to the general public via an ICO."
Whereas he informs that courtroom that Telegram has decided With a purpose to postpone the launch of the TON blockchain, the corporate concluded that there isn’t a want for the Court docket to file a provisional provision when submitting.
If reportedAlong with declaring Gram tokens unlawful, the SEC additionally issued a brief restrictive order for issuing Gram tokens, with a courtroom listening to scheduled for October 24.