In a recent news story, the US Securities and Exchange Commission (SEC) has started criticizing for its recent actions against Elon Musk’s Tesla, the crypto market and investment firms within the local market.
Michael Arrington, the co-founder of TechCrunch formally announced on 29th September that his venture capital firm has acquired to move out of the US and establish to Asia after the SEC sent two judicial writs to XRP Capital.
Further speaking to the subject matter, Arrington said “We received a second subpoena from the SEC, again collecting information from us as investors in a U.S. company. The legal costs of dealing with these are not insignificant. We will not invest in any further U.S. deals until the SEC clarifies token rules. Pivot to Asia.”
The resentful decision of the SEC to restrain on local companies and investment companies, Arrington further said in his statement that “the U.S. has already been left behind.”
Amid this, the two heavily regulated cryptocurrency exchanges in the global market, Coinbase, and Gemini have been actively working together with the SEC and local financial regulators to make it compact the country’s cryptocurrency infrastructure and policies.
However, recently Coinbase launched a framework that consolidates tokens to get listed on the platform under full compliance with local regulations in place. If a token is incorporated into Coinbase with the approval of the SEC, then it is officially declared as a security and exchanges are free to integrate it without involving into the risk of being acknowledged as a distributor of unregulated securities.
With Coinbase’s tokens on its platform, investors and exchanges in the US market cannot be fixed that tokens are considered as non-securities under existing laws. The entire crypto market of the US is waiting on Coinbase to start the integration process of tokens.
Amid this, the SEC’s continuous clampdown on cryptocurrency-focused investment firms and the impractical ecosystem have led major investors namely Michael Arrington and his VC firm XRP Capital to mount from the US to other major markets. Besides this, VC firms have started to receive subpoenas and become susceptible to investigations besides investing in the crypto market.
Additionally, the government enforcement defense & securities litigation attorney at Kobre & Kim LLP, Jake Chervinsky said in his statement that “US Congress is nowhere close to passing any crypto-related legislation due to the lack of companies and consortia pushing lobbyists in Washington D.C. to convince the government to pass a piece of legislation to solidify policies surrounding the crypto market.”
Besides this, Chervinsky elaborated further saying that: “There’s no money behind it yet. Like it or not, if you want to push legislation through Congress, you need lobbying infrastructure. The friend I mentioned is a fairly savage political operative. His question is basically ‘who’s gonna to pay me to get this done?”
Amid this, Japan has extended a piece of legislation to rigorously govern its local cryptocurrency exchange market and South Korea will supposedly pass its legislation on crypto and blockchain technology by the end of this year.
Since the most crypto-related business remains working outside of the US. For example, Upbit, Binance, OKEx, ShapeShift, Huobi, BitMEX and BitFlyer are actively operational in Asia, where Binance and ShapeShift which are based in Malta and Switzerland respectively!!