The U.S. Securities and Exchange Commission’s widespread crypto crackdown has been in the media spotlight, but the agency is also set to deal a major blow to America’s engine of innovation and job creation.
The SEC has proposed rules that would radically alter how the private fund industry — including venture capital — operates and is regulated, even as the ecosystem wobbles under the pressure of macroeconomic strains and the loss of critical banking partners. If implemented as proposed, these new rules will constrain the activities of private fund advisers — that is, the managers of the funds.
They aren’t the only ones who should be concerned: The proposed rules would also hurt startup founders. And because the measures would have a bigger impact on the managers of small and emerging funds, the SEC may also be jeopardizing efforts to close funding gaps for women and minority founders.
‘Enforcement 40’ for 2020
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