A logo for the fictional “Blockchain Exchange Commission” the U.S. Securites and Exchange Commission alleges Blockvest used to promote its ICO (left) and the SEC’s official seal, which Blockvest is also alleged to have used without authorization. (Photo illustration: Jason Doiy/ALM)
Lawyers looking at a first-of-its-kind decision this week turning back the SEC’s request for a preliminary injunction to block the launch of an initial coin offering cautioned that while the loss is undoubtedly a setback for the agency, it isn’t likely to dramatically affect its approach to the ICO market.
U.S District Judge Gonzalo Curiel of the Southern District of California turned back the SEC’s injunction bid Tuesday in a case against the backers of the Blockvest ICO. The judge, who previously granted the SEC’s ex parte request for a temporary restraining order and froze the assets involved in the ICO, found there was a gap between the two sides’ versions of the facts and that the SEC hadn’t carried its burden to show Blockvest’s BLV tokens were securities.
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