The US Securities and Exchange Commission (SEC) just issued a subpoena on around 80 cryptocurrency companies – including the famous TechCrunch crypto fund founded by Michael Arrington and valued at more than $100 million.
The news about the subpoena comes from CNBC this Thursday. In an interview with the media outlet, Arrington told that he received the subpoena but “has no problem with it”. He also said that the US government should soon figure out the rules for the market that follows.
Currently, there is no clear determination of securities laws and digital coins. Even though the SEC has said that digital coins are subject to certain regulations, they did not indicate how their developers can comply with the regulations. As a result, the cryptocurrency firms have had to rely on lawyers so that they distinguish their companies from the numerous scams out there.
The SEC has decided to make this move after collecting a lot of information about cryptocurrencies the last year – and especially after the fact that the market drawn billions of dollars all thanks to cryptocurrencies.
More than 80 firms have been subpoenaed. The investigations were mainly based on regulatory uncertainties and activities offshore. According to Arrington, “it is ashame that the US has ‘frozen itself’”.
In times when many countries approach cryptocurrencies differently, it is up to the US regulatory bodies to decide the direction they will take in this manner. The facts are that ICOs raised more than $5 billion last year alone – and that this number will be likely crossed in 2018.
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