Top cryptocurrency investors Andreessen Horowitz and Union Square Ventures urged the US Securities and Exchange Commission (SEC) to consider a cryptocurrency exemption at a private meeting, the Wall Street Journal reports April 19.
The Silicon Valley-based venture capital firms met with top officials of the SEC’s Division of Corporation Finance, which regulates Initial Coin Offerings (ICOs), to argue against stringent cryptocurrency regulations that they claim would impair the development of the young growing industry.
According to WSJ, the group of crypto investors argued that ICO tokens should not be considered as investments, but as products that can be used to access services of startup companies, which would allow startups to carry out token sales without observing formalities such as business reviews and financial reports. The group assured the SEC that ICO issuers would be held accountable in cases of fraud.
The SEC has privately expressed skepticism to such a broad exemption, and is more likely to opt for a “limited exemption” from oversight, wherein each investor would acquire investments limits, and the purchased tokens would not be resold to third parties for profit.
We just sent you an email. Please click the link in the email to confirm your subscription!
OKSubscriptions powered by Strikingly