Geekly Articles each Day
📜 ⬆️ ⬇️

US authorities will check the activities of the cryptocurrency fund founder techclog TechCrunch



Right: TechCrunch founder Michael Arrington. Image : By Brian Solis - TechCrunch August Capital - Chamillionaire and Michael Arrington, CC BY 2.0

The US Securities and Exchange Commission (SEC) intends to conduct an extensive study of the legality of the activities of financial companies in the field of cryptocurrency. The Michael Arrington Foundation, founder of the famous TechCrunch, which launched its own $ 100 million fund in the fall, will also be tested. Arrington has already received a notice, writes CNBC.
')

What's happening


According to Arrington himself, all the crypto funds, with whom he spoke, received similar judicial notices. “The authorities must work out rules for working with cryptocurrencies, so the SEC has to go to such measures,” suggests the founder of the largest technology media.

At the moment, it is really not clear how the activity with cryptocurrency is legally regulated. That is why cryptocurrency companies rely on the public disclosure of their own data and on the help of lawyers to avoid fraud charges. Due to regulatory gaps, many companies, such as those conducting ICOs, refuse to cooperate with US citizens in order to avoid possible claims by the US authorities.

Recently, the SEC has become particularly active: according to The Wall Street Journal, the commission has sent more than a dozen notifications, including requests for data on ICOs undergoing. The largest publication on the topic of cryptocurrency CoinDesk wrote that about 80 companies received similar requests.

Cryptocurrencies and regulation: what to expect


Requests for additional data are sent from 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 like 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 Mogayar, a blockchain investor and author of the book “Blockchain for Business”, the right decision for the Commission would be to find a clear definition of cryptocurrency, not 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 of legislative regulation,” said Ryan Schoen, senior analyst for financial services analysis at Washington Analysis. He assumes that the exchanges related to trading in “unregistered securities” will be subject to SEC proceedings.

Earlier this year, Jay Clayton, chairman of the US Securities and Exchange Commission, announced that the agency would devote a significant part of its work to ICO market research. Last summer, the Commission issued a booklet for investors warning of the dangers of investing in ICO.

Other materials on finance and stock market from ITI Capital :


Source: https://habr.com/ru/post/352218/

More articles:


All Articles