Just a few days ago, the court requested an opinion of the Commodities Futures Trading Commission on their view of “gram” the coin being proposed by Telegram in relationship to their new TRON network. The US Security & Exchange Commission has been viewing “gram” as a security and is therefore under the regulatory authority of the commission. TRON on the other hand says the “gram” is a commodity and is therefore not under the eye and rules of the SEC.
CTFC Opinion Without An Opinion
In an effort the get a better understanding, Judge of the New York Southern District Court requested clarify from the Commodity Futures Trading Commission.
When you ask a governmental body to issue a precise opinion in a lawsuit, you know you will get a lot of lawyer doubletalk with no commitment. And that is exactly what the court received.
Say Nothing Commit to Nothing
To sum it up, the CFTC stated that “grams” were a commodity. Ok that is a step in the right direction for TRON, but the opinion went on to state that this does not mean that a commodity can not be security simultaneously as many are. The opinion went on to state that this was not up to the CTFC but up to the Security and Exchange Commission to determine as to what is and what is not a security under the “33 ACT”
So basically the CTFC avoiding making any precise conclusion regarding Telegrams “grams” and provide not assistance to the court.
The Battle Begins
The battle will take place today as both sides will be in court to argue their positions. The outcome of this case will be critical to the view of digital assets in the US.
If the court declares that Telegram did not violate the Securities Act of 1933 and is not under the rules of the SEC, Telegram will be able to move forward with their TRON network after raising over 1.7 billion dollars.
No resolution is expected today, but we should get some indications based on the courts questions to the attorneys based on the briefs they have files.
Future Precedent
Whatever the outcome these legal decisions will form a precedent for all future Tokens to be issued in the United States and the view and regulations of such tokens and digital assets and the authority in charge.
In the meantime TRON is moving forward at full steam. Just days ago they issued a new whitepaper on their development of the TRON network. TRON continues to release updated technical details and development of their network.
Whatever the outcome, it will have a great effect into the future. Telegram maintains that the SEC guidance and attacks are overbearing and prejudicial and made it impossible for Telegram to introduce TRON under their guidelines. No matter where you stand get comfortable and watch the battle unfold.