A U.S. decide has requested legal professionals from the Commodity Futures Buying and selling Fee (CFTC) to present an opinion in the case introduced by the Securities and Alternate Fee (SEC) towards Telegram’s $1.7 billion token sale.

On Thursday, Decide Kevin P. Castel of the Southern District of New York issued an order inviting the CFTC’s workplace of the final counsel “to categorical its views on the problems presently earlier than the Courtroom.” The opinion will be submitted in writing, the decide stated.

Whether or not “gram,” the cryptocurrency of Telegram’s TON blockchain, is a safety or a commodity has been the principle query of the four-month-long litigation. The SEC insists the not-yet-issued grams had been offered to buyers as securities, with the expectation of future earnings.

Telegram maintains that, similar to bitcoin and ether, as soon as grams are issued they are going to be a commodity – merely the native token of the TON blockchain.

In a memorandum beforehand submitted to courtroom, the SEC stated there is not any method grams could possibly be thought of a commodity as “the worth of that asset can have depended and can nonetheless rely on Telegram’s efforts to improve demand for and, thus, improve the worth of that asset as purchasers fairly anticipated and can count on.”

Telegram, in its responding memorandum, argued it had by no means marketed grams as an funding device, however all of the advertising and marketing supplies “clearly and primarily emphasised the meant consumptive worth of Grams as ‘the primary mass-market cryptocurrency.’” The principle worth proposition has been that the tokens might be broadly adopted by customers when TON is reside, the memorandum goes.

The CFTC has beforehand said that cryptocurrencies “resembling bitcoin” meet the definition of a commodity however the company has not expressed its opinion on token gross sales like Telegram’s. In a joint Wall Road Journal op-ed in 2018, SEC and CFTC chairmen Jay Clayton and Christopher Giancarlo stated that “most of the internet-based cryptocurrency buying and selling platforms have registered as fee providers and should not topic to direct oversight by the SEC or the CFTC.”

Additionally on Thursday, Decide Castel ordered the primary listening to for the case be rescheduled from Feb. 18 to Feb. 19, citing a delay in one other trial as the explanation for the rescheduling.

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