According to Odaily, the founder of BlockTower Capital has indicated that the actions of the U.S. Securities and Exchange Commission (SEC) against venture capital signify the agency's expanding crackdown on cryptocurrency. Ari Paul, the Chief Investment Officer of the agency, stated on the Unchained podcast on Wednesday that the U.S. SEC has initiated 'a series of investigations into venture capital firms as unregistered securities dealers.'
Some venture capital firms have violated the regulator's strict securities laws through discounted token transactions they have reached with cryptocurrency projects. This development marks the latest upgrade in the U.S. Securities and Exchange Commission's crackdown on the digital asset industry. The SEC's actions are seen as an expansion of their regulatory scope into the realm of cryptocurrencies, indicating a more stringent approach towards the digital asset industry.