TechCrunch Co-Founder’s Crypto Hedge Fund Will Leave US in Response to SEC Subpoena

  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. "

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. Michael Arrington    

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.