Big VCs Push SEC To Back Off

Big Venture Capital that supports crypto-currency firms have hired the major Washington, D.C. lobbyist guns to try to keep the Securities and Exchange Commission and other financial regulators off their backs.

According to the Wall Street Journal, “The group wanted formal assurance from regulators that their products would be exempt from SEC oversight, arguing the tokens aren’t investments but products that can be exclusively used to access services or networks provided by startup companies.” The K Street boys allowed that the SEC could still regulate fraud.

Surprisingly, the SEC allegedly offered “a limited exemption from oversight if a company’s token sale is capped at a per-investor limit and can’t be resold at a profit to third parties.”

However, continuing hacks resulting in token theft, ICO failures and outright fraud may cool the potential interest of the regulators in exempting alt coins from regulation.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, balance, Banks, Broker dealers, checkbook, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, FINRA, fraud, Investments, Jobs, Legislative Intent, SEC, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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