According to PANews, the U.S. Securities and Exchange Commission (SEC) has issued subpoenas to at least three cryptocurrency venture capital firms this year. Sources familiar with the investigation revealed that the subpoenas are titled 'In the Matter of Certain Crypto Asset Intermediaries.' The SEC is investigating whether there have been violations of federal securities laws. DL News reviewed the subpoenas but could not disclose the specific targets of the SEC's investigation.The SEC's focus on crypto venture capital indicates that the agency is scrutinizing the initial funding channels for most crypto startups. An anonymous source stated that at least two other crypto venture capital firms received similar document requests. The subpoenas demand information on any token transaction contracts involving investors. A lawyer from a crypto venture capital firm not affected by the subpoenas described the investigation as an overly broad and costly search. This lawyer, who had heard about the investigation before speaking with DL News, requested anonymity to avoid public mention of the SEC.Elisha Kobre, a lawyer specializing in securities and commodities fraud at Bradley Arant Boult Cummings, commented that the SEC's scrutiny of venture capital is reasonable. He suggested that the SEC might consider this an additional enforcement area. Sources familiar with the investigation indicated that financial regulators might be interested in whether crypto venture capital firms act as 'statutory underwriters.' Statutory underwriters are broker-dealers who purchase securities intending to distribute them to the public.Many crypto startups file token financing records with the SEC but often seek exemptions from registering their securities, as they only offer future token rights to qualified investors. The SEC is reportedly interested in whether these qualified investors are distributing unregistered securities to a broader retail market. The source added that such actions could 'poison the initial issuance,' referring to the potential impact when investors sell tokens on the public market.
