TLDR:
- The SEC has issued subpoenas to three crypto venture capital firms in an indication that the crackdown on cryptocurrencies is intensifying.
- The subpoenas asked for information on any token deal contracts done by the investors, hinting at a broader investigation into potential violations of federal securities laws.
The US Securities and Exchange Commission (SEC) has escalated its scrutiny of the cryptocurrency industry by issuing subpoenas to three crypto venture capital firms. The subpoenas, with titles such as “in the matter of certain crypto asset offering intermediaries,” suggest that the SEC is investigating potential violations of federal securities laws within the crypto capital funnel – the investors who provide initial funding for crypto startups. The subpoenas requested information on any token deal contracts entered into by the investors.
The move by the SEC signals a broader crackdown on the cryptocurrency industry, following recent actions against influencers, projects, and exchanges. The agency’s investigation may be focused on determining whether crypto VCs are acting as statutory underwriters by buying securities with the intent to distribute them to the public. This could have implications for the regulation of token fundraises and the offering of securities to retail investors.
The development comes amidst increasing regulatory scrutiny on the cryptocurrency industry, with the SEC targeting various entities for possible violations of securities laws. The SEC’s actions reflect a growing trend of regulatory oversight in the crypto space, as authorities seek to protect investors and ensure compliance with existing regulations.
