A U.S. District Judge allowed the Blockchain Association to file a brief in an ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Kik despite the regulatorâs concerns the group was not a neutral observer.
Judge Alvin K. Hellerstein of the Southern District of New York signed off on the advocacy groupâs right to file the amicus â or âfriend of the courtâ â brief last week, a day after the SEC filed an objection saying several members of the association had financial interests in the case, and it therefore was not an objective or neutral entity.Â
The Blockchain Association pushed back against the SECâs description of its role in the case Tuesday, with Executive Director Kristin Smith saying the group was âproud to fileâ the brief.
âThe SECâs description of our brief was wrong, and we are pleased the court granted our motion to participate as a friend of the court,â she said in a statement shared with CoinDesk.Â
Graham Newhall, the associationâs communications advisor, said the group wouldnât comment on the specific claims the SEC made in its filing, but said that âitâs a little strange to treat the Blockchain Association different from other trade associations.â
Kik is not currently a member of the group, though the Blockchain Association does currently manage the âDefend Cryptoâ fund Kik originally launched last year.Â
âThe Blockchain Association was proud to file its amicus brief in this matter, and we appreciate the opportunity to speak for the entire industry in supporting sensible regulation,â Smith said. âThe court system benefits from amicus briefs like ours that place the partiesâ evidence and arguments in their broader context, a role played every day by associations, non-governmental organizations and advocacy groups in courts across America.â
Kik and the SEC both filed their oppositions to motions for summary judgement by the parties late last Friday.
The SEC maintains the kin sales were a securities transaction, while Kik says its public sale was not. Kik originally sought a jury trial for the case, which began in June 2019, though it has since walked back from the stance.Â
The SEC declined to comment.