TLDR:
- The SEC is targeting crypto venture capital firms in new investigations for acting as unregistered securities dealers.
- BlockTower Capital founder Ari Paul shared this news on the Unchained podcast.
The US Securities and Exchange Commission (SEC) has initiated investigations into crypto venture capital firms for breaching securities laws by engaging in discounted token deals with crypto projects. This development represents the latest escalation in the SEC’s crackdown on the digital assets industry under Chair Gary Gensler. The BlockTower Capital founder, Ari Paul, highlighted these probes during his appearance on the Unchained podcast, suggesting that such actions by VCs could designate them as unregistered securities dealers. Paul illustrated how some VCs may be violating securities laws by receiving tokens at discounted rates in exchange for promotion and marketing activities.
Paul’s remarks shed light on the ongoing battle between the SEC and the crypto industry regarding the regulatory framework for digital assets. The SEC’s actions have not only targeted major crypto exchanges like Coinbase, Kraken, and Binance but have also extended to DeFi projects such as Consensys’ MetaMask staking service and Uniswap. As the debate over the regulation of cryptocurrencies continues, the SEC’s intensified clampdown on the industry signals a growing scrutiny towards entities involved in the crypto ecosystem.
