Venture capital firms ask SEC not to regulate cryptocurrencies

Venture capital firms ask SEC not to regulate cryptocurrencies

According to media reports, major venture capital firms have asked the Securities and Exchange Commission (SEC) not to regulate digital token transactions. They argued that government regulation could stifle innovation in the development of cryptocurrency and blockchain.

According to The Wall Street Journal, the heads of Andreessen Horowitz and Union Square Ventures met with representatives of the SEC. Several lawyers from both sides were also present at the meeting. Businessmen said that cryptocurrencies should be freed from the need for heavy regulation, and that they are not opposed to the SEC investigating fraudulent and criminal activities related to cryptocurrencies. They insisted on formal guarantees that their product would be exempt from SEC scrutiny. It was argued that digital tokens do not function as securities of a specific company, but instead give their owners access to cryptocurrency projects.

According to the report, SEC representatives expressed skepticism about their proposals.


The reason for holding this meeting was a series of statements by SEC Chairman Jay Clayton that he would recommend taking steps to “tighten the screws” in relation to ICOs and digital tokens in general. 




According to http://thehill.com

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