Digital asset administration firm Arrington XRP Capital may be poised to cease funding any U.S.-based startups.
Participant and founder Michael Arrington tweeted Friday morning that the throng had “received a second subpoena” from the U.S. Securities and Exchange Commission (SEC) due to the corporation’s role as an investor in a company based in the United States.
He added:
“The legit costs of dealing with these are not insignificant. We will not invest in any beyond U.S. deals until the SEC clarifies token rules. Pivot to Asia.”
In a support tweet he also noted that Lichtenstein is a country he may look toward.
Arrington did not upon which company is being investigated by the SEC, or what information the firm was outlined to provide. It was also not clear what the costs were for responding to the subpoena.
In any event, Arrington joins an increasingly large group of members in the crypto community looking for keen clarity from the SEC on how it classifies token sales as securities or non-securities.
A group of 15 congressmen eradicated a letter to the agency’s chair, Jay Clayton, Friday asking him to more indubitably define how the regulator is approaching token sales.
Stopping short of accord a deadline for the SEC, it did list a series of questions that lawmakers hope to see answered on when sign sales qualify as securities offerings and whether this classification can vacillate turn into over time.
Arrington declined to comment on the matter when reached.
Leader-writer’s note: The headline to this article has been updated.
Michael Arrington fetish via 360b / Shutterstock
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