The Breakdown The SEC Goes After Crypto VCs
Aug 14, 2024
The SEC is ramping up its investigation into crypto venture capitalists, raising alarm over potential securities law violations. With subpoenas targeting token deals, the industry faces uncertainty amid aggressive regulatory actions. On a brighter note, community-driven events are helping to foster growth in the crypto space. Additionally, the governance shifts of Wrapped Bitcoin are stirring debates, especially with Justin Sun's involvement, as regulatory challenges surrounding Bitcoin ETFs continue to unfold.
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SEC Investigates Crypto VCs
- The SEC is investigating crypto VCs for potential involvement as statutory underwriters in token deals.
- This raises concerns about VCs acting as intermediaries to facilitate otherwise illegal ICOs.
VCs Ignoring Legal Risks
- Orlando Cosme warned crypto VCs about predatory terms in token deals increasing their legal risk as underwriters.
- These warnings were dismissed by VCs who believed there was no risk due to a lack of prior examples.
Gensler's Agenda and Its Impact
- Some view the SEC's actions as part of Gensler's agenda, while others see it as a tactical move to cripple the crypto industry.
- Critics like Anthony Scaramucci believe Gensler's actions could negatively impact the Democrats' chances in the presidential election.