Investor and founder of the popular edition Michael Arrington said that his company Arrington XRP Capital abandons further investment in tokens to the United States and considers Asia or other jurisdictions as the new place to do business.
This decision came after receiving a second summons from the Commission on securities and exchange Commission (SEC), which wants to obtain information regarding its investment in one of the American companies.
We received a second subpeona from the SEC, again collecting information from us as investors in a U.S. company. The legal costs of dealing with these are not insignificant. We will not invest in any further U.S. deals until the SEC clarifies token rules. Pivot to Asia.
— Michael Arrington (@arrington) 28 September 2018
“We received a second subpoena from the SEC, they want to get information about our role as investor in a us company. Costs for legal support in this case is negligible. We are not going to invest more in the United States, as long as the SEC does not explain the rules regarding tokens. Pivoting towards Asia,” Arrington wrote in his Twitter.
In the comments cticu Arrington wrote that is also considering the possibility of doing business in Liechtenstein
Hedge Fund Arrington XRP Capital, under which was supposed to raise $100 million, was launched in November 2017. The Arrington has also invested in several projects, including the developer of the decentralized Internet browser Blockstack, and also acted as adviser to the real estate marketplace Propy. Brokered Propy Arrington in September 2017 bought for Ethereum apartment in Kiev.
In March of this year, the founder of TechCrunch was hit by a massive SEC investigation concerning the scope of the ICO. However, he noted that he had received a summons as a private citizen, and we are talking about the enterprise in which he invested last summer. According to Arrington, he publicly nowhere it is mentioned.
Regulation of the cryptocurrency industry in the United States, in particular tokens have long been the subject of sharp criticism from the community. Regulators are often criticized for lack of clarity, which interferes with the normal development of the industry. Often there are fears that because of this approach, the U.S. may cede leadership to other countries that are more open to innovation.
These and other questions, in particular, was discussed this week in Washington, where a round table was held with the participation of lawmakers and representatives of more than 45 companies wall street and cryptocurrency projects.