Pantera Capital explained that most of the Initial Coin Offerings (ICOs) it has invested in are not affected by the SEC stance on ICOs. The company is one of the leading investment firms related to blockchain and virtual currencies. This was unveiled in a report released by Bloomberg a few days ago.

Most of Pantera Capital’s ICO Will Not be Affected

The U.S. Securities and Exchange Commission (SEC) started to go behind Initial Coin Offerings. A few weeks ago, the regulatory agency informed that the ICOs Airfox and Paragon will have to pay $250,000 as a fine and repay millions of dollars to investors.

Between the last months of 2017 and the beginning of 2018, several ICOs were released to the market. The number of projects in the space grew exponentially. Additionally, several of them were able to raise millions of dollars in investments from all around the world. However, the market has eaten most of these funds since virtual currencies fell to new lows in the last year.

In a newsletter written a few days ago, Dan Morehead and Joey Krug, Pantera’s co-chief investment officers, commented on how the decision taken by the SEC would affect their business.

Both of them wrote about it:

“While we believe the vast majority of the projects in our portfolio should not be affected approximately 25 percent of our fund’s capital is invested in projects with liquid tokens that sold to U.S. investors without using regulation D or regulation S.”

Most of the ICOs that released tokens to the market did not follow local securities laws. This is why the regulatory agency is going behind these ICOs that believe that should have been registered. In the newsletter, Morehead and Krug explain that 10 percent of their portfolio would be affected.

“If any of these projects are deemed to be securities, the SEC’s position could adversely affect them,” they said. “Of these projects, about a third (approximately 10 percent of the portfolio), are live and functional and, while they could technically continue without further development, ending development would hinder their progress.”

There are several regulatory agencies around the world that are trying to regulate virtual currencies and ICOs. For example, South Korea has banned ICOs from operating in the country. Something similar to what China did in 2017.