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Pantera a United States blockchain investment firm was quoted saying that almost 25% of its funds that were previously invested in digital assets or projects that may have gone against the United States securities regulations. This highlights a rather growing concern in the cryptocurrency business about the digital tokens that were issued in the past two years. Some of these companies may have also violated U.S. securities laws.

SEC’s stand on its laws

The California based cryptocurrency company, Pantera is one of the largest digital currency investors. A monthly letter sent to subscribers and clients, the chief executive of the investment firm Joey Krug said The non compliant investment projects are likely to end up putting an up an offer to buy back the tokens at the same sale price from the investors and will ultimately have to register as securities as required by the law. The company did not give any further comments.

In November, SEC announced that it had settled its charges against non compliant coin offerings. SEC concluded by saying that all tokens are deemed securities and if they are sold to any United States non accredited investors without looking up to an exemption, they will be considered non compliant.

Most of the Pantera’s digital currency investments will not be affected

Between the end of the last year and the beginning of this year, several initial coin offerings were released to the public market. This led to the growth of a number of projects. Some of these projects were able to raise millions of dollars in investment funds from all across the globe. However, most of these funds have been used up by the market since virtual currencies fell to new lows last year.

The co-chief investment officers recently commented on how the SEC laws would ultimately affect their business and investors. They were quoted saying; “While we believe a large majority of our projects will not be affected, approximately a quarter of our fund’s in capital is invested in projects with tokens that were sold to investors in the United States contrary to using regulation D or S.”

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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