Bitcoin, Crypto currency, Blockchain

Silicon Valley VCs before speaking with the SEC for ICO-regulation

60890233e9d06a7f344b5e9a2441c093 - Silicon Valley VCs before speaking with the SEC for ICO-regulation

Two of the largest Venture Capital (VC) firms in the Silicon Valley, investing in crypto-based company, Andreessen Horowitz and Union Square Ventures have already been on 28. March with the American regulatory Agency, the SEC hit, and against a General classification of ICOs as the value of paper.

As the Wall Street Journal reported yesterday, have already met at the end of March, high-ranking representatives of the venture capital firms Andreessen Horowitz and Union Square Ventures, as well as the U.S. securities and exchange Commission SEC (Securities and Exchanges). Concerns of the VC companies, it was against a General regulation of ICOs as part of the securities (“Security) to pronounce and to obtain, in particular, exemptions for the Token, in which you have invested.

The reason for this is the SEC, delivered, probably, already in February, in the framework of a hearing, the SEC Chairman Jay Clayton signaled that the SEC believes that most of the ICO tokens are to be classified as securities. This classification would have for the company behind the ICOs significant regulatory consequences.

The Wall Street Journal that this was the reason for the Meeting. Andreessen Horowitz and Union Square Ventures are two of the most active capital providers from Silicon Valley for Cryptocurrency-related companies. Andreessen Horowitz has invested in ICOs and companies such as Coinbase, Ripple, open Bazaar, earn.com, media chain, DFinity.

Union Square Ventures also holds numerous investments, including Coinbase, block stack, Protocol Labs, Media Chain, Open Bazaar and Filecoin. Recently, both companies have participated in a financing round of over $ 12 million of the Crypto Kitties.

The VC-firms should Want to, according to the report from the Wall Street Journal lawyers from Cooley LLP, Perkins Coie LLP and McDermott will & Emery LLP to be accompanied and focused on a “formal assurance” that the SEC will not take action against ICO tokens you have invested.

The reasoning of the company should have looked like the tokens were a means to access Blockchain-based services. Thus, the Tokens are so-called “Utility-Token” and no value paper.

The topic of the regulation of ICOs by the SEC and their classification as securities for a long-time favorite in the last few months. Many investors in the crypto community are concerned that a strict control and supervision of the SEC over ICO to damage the market and the innovation potential could keep.

A different attitude has taken recently, Ryan Zagone from Ripple, has specifically asked the regulators in the UK, to end the times of the “Wild West”.

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