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The US Securities and Exchange Commission (SEC) has assigned 80 cryptocurrency companies, including the cryptofund of Michael Arrington, founder of TechCrunch. , according to CNBC.

Arrington told CNBC on Thursday that he had received a subpoena, like every cryptofund to which he spoke.

Arrington said that he has no problem with assigning. He said the government needed to set its rules for the market to follow.

It remains undetermined if securities laws apply to digital coins. While the SEC has stated that digital parts are subject to regulations, it has not indicated how digital coin developers can comply with the regulations. As a result, cryptocurrency companies had to rely on lawyers to distinguish their companies from cryptocurrency scams.

In some cases, cryptocurrency companies have chosen to prohibit US investors from participating in their bids because of legal uncertainties.

The SEC has asked for more information on cryptocurrency over the past year as the market has attracted billions of dollars. Last Wednesday, the Wall Street Journal reported that the SEC has published numerous subpoenas for new digital plays.

Jason Gottlieb, partner and director of the cryptocurrency litigation team at Morrison Cohen, said the SEC’s offices in New York, Boston, and San Francisco have issued subpoenas. Another source confirmed these locations.

Probe expected to last one year

Gottlieb, who represents PlexCorps, a company facing SEC fraud charges, said the SEC ‘s general investigation will continue throughout the year.

A source claimed that about 80 companies had been cited so far.

The SEC did not respond to a request for comment from the CNBC.

SEC investigations, as well as regulatory uncertainty, have led some cryptocurrency activities abroad, Arrington said. He said it’s a shame that the United States has “froze”.

From an investor’s point of view, Mr. Arrington said he was more interested in projects from China and neighboring Asian countries, calling them “consistently high quality”.

Countries approach encryption differently

Regulators in different countries have adopted different approaches to cryptocurrencies.

China banned ICOs in September. Japan cleared cryptocurrency in April, while South Korea banned anonymous transactions at the end of January.

William Mougayar, a blockchain investor and the author of a book, “The Business Blockchain,” said he hoped the SEC would not classify the chips because it would be a ” slippery slope “. He said it would make more sense to focus on well-defined disclosures without being too restrictive.

ICOs raised more than $ 5 billion just last year, according to Autonomous Next. Such offers, however, hardly exist beyond a white paper posting.

Read also: SEC wants to “know everything” about 20 million dollars tZero ICO: Overstock CEO

SEC Clamping down

SEC chairman Jay Clayton wrote an editorial with the chairman of the Commodity Futures Trading Commission stating that the SEC spends significant resources on the ICO market. During the summer, the commission issued a newsletter on the dangers of country offices.

Gottlieb expects that a “hodgepodge of court decisions” will result from the SEC’s investigation rather than laws or regulations that would require more time to develop . He said the Supreme Court may need to be involved in resolving some issues.

The question of whether an asset is a security is generally guided by the “Howey test”, based on a case before the Supreme Court in 1946.

Ryan Schoen, Senior Financial Services Policy Analyst at Washington Analysis, said that subpoenas would likely result in some tokens being unregistered.

Trade-related trading in non-registered securities will likely be the subject of close scrutiny by the SEC, Schoen said.
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