Earlier onboarded to govern the funds, the Blockchain Association is now set to govern the ‘Defend Crypto’ initiative previously set up Kik Interactive for its ongoing fight against the US Securities and Exchange Commission. The Canada-based social media firm will be relieved from controlling the crowdfunding campaign. The Blockchain Association is all set to take control of the campaign “to advance U.S. public policy for the cryptocurrency ecosystem” as cited by the official blog post.
It further stated,
“We believe policy should be made in an open rulemaking process or open legislative process, where ideas can be vetted, debated, improved upon, and anyone who is impacted can share their views. That’s why we’re spending so much energy and resources working to advance legislation in Congress and engaging directly with regulators on our issues.”
The funds will be allocated for constructive engagement in the legal process and initiatives dedicated to bring about regulatory clarity and allow innovation.
Following the Blockchain Association taking over the initiative, Defend Crypto fund will be used to fund other projects who are fighting similar battles and litigation but “do not have the adequate sources to take on SEC.” The Defend Crypto initiative had reached a size of $6.6 million after Kik’s initial $5 million commitment and additional contributions pouring in from outside.
According to Kik’s Technical Advisor, Tanner Philip, the Blockchain Association have been a “strong advocate” for the crypto industry . The lobbyist group which consists of a strong team backed by influential builders in the space would be in the best position “to objectively allocate the resources to the highest impact initiatives”.
He also added
Kik’s initial $5MM commitment and the additional outside contributions have appreciated by $1.6MM, bringing the total size of the Defend Crypto fund to $6.6MM. Going forward, Kik will separate its initial $5MM contribution into a separate account to support our fight in the ongoing case and will dedicate the additional $1.6MM to the Defend Crypto fund to help other projects fighting for the future of crypto. Kik will also be making an additional $500k contribution of Kin to the fund, bringing the total to $2.1MM.
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