According to the current SEC Commissioner, Hester Peirce, most commonly referred to as ‘Crypto Mom,’ SEC’s move to file legal action against the Telegram Open Network (TON) – which subsequently led to its shut down – was a massive error for their part. She expressed this opinion of her in the July 21st Blockchain Week Singapore speech aptly named “Not Braking and Breaking.”
Peirce reiterated the various responsibilities and roles to play by regulators within the said speech concerning innovation and progress. She then unexpectedly singled out the case the SEC submitted against Telegram’s $1.7 billion TON project.
SEC’s issues with Telegram
Telegram and SEC’s problems with one another started in October last year, wherein SEC secured several injunctions to oppose the scheduled release of the Telegram’s TON network. SEC claims that the ICO telegram ran, which garnered them $1.7 billion in 2018, was facilitated using nefarious means. That being said, SEC took the company most famous for its prominent chat application to the court, and thus, their war has begun.
Telegram was seemingly always at the losing end of this very long battle. Eventually, because of the prolonged law case against it, Telegram was forced to give back the money it raised to its investors. By May of this year, the company decided to abandon the TON project altogether. Immediately following that month, SEC receives $18.5 million from Telegram as settlement.
The first time Heister publicly opposed SEC’s decision
The SEC commissioner firmly sees this conclusion as nothing but unsatisfying. Particularly, she feels that the downfall of the project served no one any good and that this move may bring in more negatives rather than positives. Notably, this is the very first time Peirce publicly opposed the SEC’s decision to go against Telegram – which she clarified that she wasn’t a fan of from the very beginning.