SEC Subpoenas Venture Capital Firms Over Crypto Token Deals

Over the past year, the U.S. Securities and Exchange Commission (SEC) has subpoenaed at least three venture capital firms, seeking details on any token deals they have conducted, as reported by DL News. The subpoenas are part of a broader SEC crackdown on the crypto industry, which has included charges against major crypto exchanges like Binance, Coinbase, and Kraken following the FTX collapse in late 2022. SEC Chair Gary Gensler emphasizes that most cryptocurrencies are securities, urging firms to register. Meanwhile, the crypto industry seeks clearer regulations, and lawmakers are working on a federal framework. Additionally, other regulators have expressed concerns about the venture capital's due diligence practices in the crypto sector, highlighting a 'trust deficit' and potential oversight failures in the wake of the FTX scandal.