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The SEC has reportedly summoned the managers of several cryptocurrency-focused hedge funds. This sector has been rapidly growing over the past year and the American regulators apparently want to make sure they have a handle on the situation and to ensure that funds are not going to fields they disapprove of such as ICOs.
The US Securities and Exchange Commission (SEC) has sent requests for information as well as subpoenas to a number of cryptocurrency hedge funds recently. The regulators demanded to know how funds priced investments in cryptocurrencies and about their compliance with client money protection requirements, three sources who asked to remain anonymous told Bloomberg.
The SEC is on an active quest to remove all illicit offerings from the cryptocurrency ecosystem. That is quite a steep challenge, as there are a lot of things to take into consideration. The commission’s latest effort involves issuing dozens of subpoenas to ICO issuers.
The SEC Steps up its Game
Most people will be pleased to see the SEC take this course of action. There is nothing wrong with what the agency is doing as of right now, even though those who are involved in the ICO industry will not be too pleased with the way things are going. It has become very clear that the government agency is concerned with initial coin offerings and the potentially illegal aspects of some of these projects.
On February 28, 2018, The Wall Street Journal reported that the SEC decided to cap off the month the way the top U.S. financial regulator started it: targeting ICOs. On Wednesday, the Journal report stated that “scores” of subpoenas and information requests were sent out demanding details about the structure of sales and pre-sales of ICOs. While the article specifically mentions that the SEC has declined to comment and cites nebulous anonymous sources, the probes reportedly sought the subpoenas and requests from tech companies and advisers involved in the digital tokens market.