US authorities will check the activities of the cryptocurrency fund of the founder of technology blog TechCrunch
Right: TechCrunch founder Michael Arrington. Image : By Brian Solis - TechCrunch August Capital - Chamillionaire and Michael Arrington, CC BY 2.0
The United States Securities and Exchange Commission (SEC) intends to conduct an extensive study of the legitimacy of cryptocurrency financial companies. The Michael Arrington Foundation, the founder of the well-known TechCrunch publication, which launched its own $ 100 million fund in the fall, will also undergo verification. Arrington has already received a notification, CNBC writes .
According to Arrington himself, all the crypto funds with whose representatives he spoke received similar judicial notices. “The authorities should develop rules for working with cryptocurrencies, so the SEC has to take such measures,” the founder of the largest technology media suggests.
At the moment, it is really unclear how legislation with cryptocurrencies is regulated. That is why cryptocurrency companies rely on public disclosure of their own data and the help of lawyers to avoid fraud allegations. Due to regulatory loopholes, many companies, such as ICOs, refuse to cooperate with American citizens in order to avoid possible claims from the US authorities.
Recently, the SEC has become especially active: according to The Wall Street Journal, the commission sent more than a dozen notifications, including requests for data on ongoing ICOs. The largest publication on the subject of cryptocurrencies CoinDesk wrote that about 80 companies received similar requests.
Cryptocurrencies and regulation: what to expect
Requests for additional data are sent from the agency’s offices in New York, Boston and San Francisco, said Jason Gottlieb, a partner at Morrison Cohen, where he leads a team of forensic cryptocurrency experts. The expert also suggested that the study of the cryptocurrency environment will continue throughout this year and its result will be more of a “jumble of court decisions” rather than the adoption of new effective laws.
Michael Arrington said that the SEC investigation and the lack of clear legislation have already forced the best US cryptocurrency projects to transfer their activities to offshore zones.
According to William Moguillard, a blockchain investor and author of the book “Blockchain for Business,” the right decision for the Commission would be to search for a clear definition of cryptocurrencies, rather than tough restrictive measures against them.
“It is very likely that as a result of the audit, the SEC will find that some tokens are outside the legal framework,” said Ryan Schoen, senior financial services analyst at Washington Analysis. He suggests that exchanges involved in trading “unregistered securities” will be the subject of litigation by the SEC.
Earlier this year, Jay Clayton, chairman of the US Securities and Exchange Commission, announced that the agency would devoteICO market research is a significant part of its work. Last summer, the Commission issued a booklet for investors warning of the dangers of investing in ICOs.
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