The whole case hinges on whether or not it is a utility token. If Reggie wins that argument the rest of the case falls apart. Reggie was very up front with and tried to work with the SEC at the time. I recall that he attempted to get "no action" letters and he took other measures to show good faith compliance efforts. In addition, he implemented KYC and AML on his platform from the beginning.

I think the SEC is going to have a hard time proving its case. Yes, they found a few examples of statements Reggie made which we don't know the context of that may or may not prove something, but he was always very careful in all of the videos and materials I saw to avoid making statements and claims like the ones in the complaint. By no means was it a pattern of behavior or conduct.

The SEC case is flimsy, but it takes a lot of money and lawyers to stand up to them. I hope he can be successful.