Telegram responded to SEC objections to issuing Gram to non-US investors
Telegram’s lawyers continue to exchange arguments with the US Securities and Exchange Commission (SEC) through the courts. On Tuesday, they protested the statement by the SEC, which, in turn, responded to the company’s request to provide clarity in the court decision..
In an appeal to Judge Kastel, lawyers call the latest SEC letter unreasonable and ask to reject the plaintiff’s petition to impose a total ban on the distribution of Gram tokens, refusing to recognize his request as “procedurally unacceptable”.
“In practice, the courts changed the restrictions following a request for clarification in similar circumstances. Changing the injunction will allow to maintain the current state of affairs by explaining to the participants in the proceedings what exactly is permitted and prohibited to the defendant, and therefore is within the powers of this court, ”the statement said..
Lawyers argue that the SEC has yet to refute their argument, in which they refer to a Supreme Court decision in another case. Under this ruling, foreign companies are largely protected from claims under US federal securities laws..
Telegram claims that the SEC has “improperly” extended the territorial coverage of local laws on the sole reason that Gram tokens may be acquired by American investors in the future. According to lawyers, the Supreme Court decision indicates that US federal law can only apply to “transactions of securities listed on domestic exchanges” and “internal transactions of other securities.”.
The company stressed that it is not going to abandon its request for clarification of the decision, which could potentially allow it to distribute Gram tokens to non-US investors..