TechCrunch co-founder Michael Arrington lashed out at the SEC on Twitter this week, saying that he will be moving his crypto hedge fund out of the US, and is urging other investors in the industry to follow suit.
Arrington has taken a special interest in the blockchain space over the years, and has developed his own firm, Arrington XRP capital, which is described as “a digital asset management firm in blockchain-based capital markets.”
Arrington says that he has received multiple subpoenas from the regulatory agency seeking to gather unspecified data about the firm’s investments. In a post to his Twitter followers, Arrington said:
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) September 28, 2018
Due to the international nature of cryptocurrency, firms like Arrington’s have the ability to establish their headquarters anywhere in the world, depending upon which jurisdiction is going to be supportive of their business.
In an interview with Beyond Blocks, Arrington clarified his statements, saying that:
What I’d really like to see is no regulation. But if we’re gonna have regulation we need to have it right and the SEC needs to make their move, they’re moving super slow. What I’d rather do is make rules, they can change them over time, at least so we know what the rules are. That’s my biggest concern.
Many cryptocurrency investors are seeking greater clarity on the regulatory framework in the US. Last week, CryptoGlobe reported that more than a dozen members of congress signed a letter to SEC Chairman calling for more clarity on how cryptocurrency will be regulated.
The push for action from the SEC was motivated by fears that the US will be left behind in the advancement of a new technology, as more crypto-friendly countries like Malta and Singapore are opening their doors for blockchain startups, investors and exchanges.