The U.S. Securities and Exchange Commission (SEC) has taken a significant step in the cryptocurrency world by sending subpoenas to at least three venture capital firms. These firms are being investigated to determine if they have complied with laws regarding cryptocurrency investments. The scrutiny of these capital sources could mark the beginning of a new era in the crypto market.
Allegations Against Venture Capital Firms
In the subpoenas, the SEC stated that it wants to review all previous token agreements made by these firms. This move by the SEC aims to identify whether venture capital firms have engaged in illegal activities in the marketing of tokens.
The investigation is looking into whether cryptocurrency investors have exploited legal loopholes to issue unregistered securities. The specific companies involved have not yet been disclosed.
SEC Increases Pressure
These developments in the cryptocurrency world are seen as a sign that the SEC will continue to increase its pressure on the sector. Following the collapse of FTX last year, the SEC’s heightened scrutiny has been a major source of concern in the cryptocurrency world.
The SEC’s lawsuits against major platforms like Binance, Coinbase, and Uniswap have caused significant upheavals in the cryptocurrency world. This new move against venture capital firms indicates that the pressure could intensify further.
