Silicon Valley’s venture capitalists ask US regulators to take an industry-friendly approach to initial coin offering (ICO) regulations.
The Wall Street Journal reports that representatives from Andreessen Horowitz and Union Square Ventures, two of Silicon Valley’s most prolific cryptocurrency investors, met with high-ranking officials at the US Securities and Exchange Commission (SEC) on March 28.
The VC firms, particularly, asked the agency’s Division of Corporation Finance to give them “formal assurance” that the SEC would not crack down on ICO tokens in which they have invested.
Big Silicon Valley backers of cryptocurrencies have sought a broad exemption from federal oversight they say would slow digital coin growth, as the industry steps up lobbying to limit government oversight of the burgeoning world of cryptocurrencies.
SEC Chairman Jay Clayton’s recent public statements have signaled that the SEC believes most ICO tokens are securities, which means that issuers are subject to significant regulatory restrictions when conducting their token sales, CNN reports.
While Andreessen and USV pushed the agency to classify more ICOs as utility tokens, which do not constitute investments and are not subject to the SEC’s purview.
By Jade Olafson