Michael Arrington, the co-founder of TechCrunch, has recently announced that his venture capital firm has planned to move out of the United States. The company takes the step after the Security and Exchange Commission (SEC) sent two subpoenas to XRP Capital. Michael is planning to relocate the TechCrunch to Asia.
According to Michael, “we have received the second subpoena 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 said that because of the unclear regulation about the crypto industry, the United States has already left much behind. Michael also added that he is feeling bad because the decisions are taken by SEC to crack down on local and investment companies. SEC has also been criticised for its actions against Elon Musk’s Tesla.
According to Michael, most of the major companies which are in the crypto field are operating outside of the United States. Binance and ShapeShift are based in Malta and Switzerland. Other companies such as Upbit, Huobi, OKEx, and BitMEX all are based in Asia.
Coinbase and Gemini are the two most heavily regulated cryptocurrency exchanges in the global market which are actively cooperating with the Security and Exchange Commission and other local financial regulators to solidify the cryptocurrency infrastructure and policies of the United States.
Recently Coinbase has introduced a framework which enables the tokens to get listed on the platform under full compliance under local regulations. The purpose of the new listing process is to speed up the process of listing digital assets which meet the standard of the crypto exchange. The tokens which are integrated into Coinbase with SEC approval, then they will be officially treated as securities and exchanges will be free to integrate them without the risk of being acknowledged as a distributor of unregulated securities. Now the entire crypto market of the United States is waiting for the Coinbase to initiate the process of integrating tokens.
Because of the regulatory uncertainties, it is becoming difficult to survive in the United States. Just because of investing in the crypto market companies are getting subpoenas from the SEC and becoming vulnerable to investigations. Major crypto investors are planning to pivot from the United States to other crypto friendly countries.