U.S. SEC Has Subpoenaed at Least Three Crypto Venture Capital Firms This Year About Their Involvement in Token Marketing: Sources With Informed Information

The U.S. Securities and Exchange Commission has subpoenaed at least three crypto venture capital firms this year, signaling that its regulation of the crypto space is ramping up, DL News reported, citing people familiar with the matter.

One of those subpoenas is titled “In the Matter of Certain Crypto Asset Offering Intermediary Matters,” which the SEC's staff is investigating to determine whether there have been violations of federal securities laws. The SEC's investigation into crypto venture capital firms shows that the agency is focusing on the initial stage of crypto capital, the investors from whom the vast majority of crypto startups receive their initial funding, the sources said.

In July, BlockTower Capital executive Paul said in a podcast that the SEC's investigation was prompted by its suspicion that crypto VCs may have acted as marketers of tokens.