Rise in privately funded crypto unicorns worries SEC Commissioner

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The growth of private capital markets over the past decades is an issue that calls for greater transparency, at least according to a Securities and Exchange Commission (SEC) executive.

In an Oct. 12 speech, SEC Commissioner Allision Herren Lee called for increased private capital and said the rise of crypto-related “unicorns” reflects the trend.

Since 2009, private capital raising has exceeded public raising. The situation has resulted in the growing number of “unicorns,” a term for private companies valued at over $ 1 billion. Lee called unicorns “a new activity, but rarer and more mythical.”

“Despite their disproportionate impact, there is little public information available on their activities,” she continued. “While some of these large companies are subject to industry-specific regulation, such regulation can be quite sparse (as with the growing number of crypto-related unicorns) or do little to ensure financial transparency.”

Indeed, the past year has seen a surge in private investment in cryptocurrency firms, according to The Block Research. In the past 24 hours alone, The Block reported on four separate fundraisers for private crypto companies that would value them at over $ 1 billion.

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