BlockTower Capital Founder US SEC Expanding Crackdown on Cryptocurrencies

The action by the U.S. Securities and Exchange Commission (SEC) against venture capital signifies an expanded crackdown on cryptocurrencies, according to BlockTower Capital’s founder. Ari Paul, Chief Investment Officer at the firm, stated on the Unchained podcast on Wednesday that the SEC has initiated “a series of investigations into venture capital firms acting as unregistered securities dealers.” Deals involving discounted tokens between some venture capital firms and cryptocurrency projects have breached stringent securities laws, marking the SEC’s latest escalation in targeting the digital asset industry.