SEC’s New Target Revealed: It’s Investigating These Cryptocurrency Companies!

Targeting the cryptocurrency market for a long time US Securities and Exchange Commission (SEC) is preparing for new investigations targeting the cryptocurrency industry.

According to DL News SEC investigates crypto venture capital firms. According to this The SEC is alleging that crypto venture capital firms sold unregistered securities.

Speaking on the Unchained podcast Ari Paul, CIO, BlockTower CapitalThe SEC is investigating these companies for potentially acting as unregistered securities dealers, he said.

Ari Paul said these investigations are a sign that the SEC, under Chairman Gary Gensler, is increasing its pressure on the digital asset industry. He argued that the SEC’s actions were justified, with some VCs acting as securities dealers by striking deals with crypto projects before their tokens were publicly traded.

The celebrity explained how some VCs violated securities laws. According to Paul, a crypto money Before a project launches a token, its team typically makes deals with market makers or venture firms. In these deals, the crypto project promises to sell VC tokens at a large discount to the price they expect them to trade at in the future. In return, the VC is expected to promote the token.

“Looking at these agreements between crypto projects and crypto VCs, VCs are acting like a securities dealer.

And from an ethical perspective, they are very clearly acting as a pump-and-dump.”

The SEC, chaired by the tough and repressive Gary Gensler, Coinbase, Kraken and Binancesued for allegedly illegally offering unregistered securities to investors.

Moreover DeFi The sector could not escape the suppressive actions of the SEC. Because on June 28, the SEC Consensys MetaMask filed a lawsuit accusing it of unregistered sales of securities through its staking service.

*This is not investment advice.