The few crypto firms that have registered with the SEC

We now have an idea of ​​crypto companies that have registered with the Securities and Exchange Commission (SEC), which allows us to look at their subsequent success rate.

Why it’s important: The SEC’s pitch to companies has been that registration is as easy as a form on the agency’s website. But according to a new list, only nine have achieved some form of registration with the agency. They have had mixed results since then.

The big picture: It is not known how many others have tried to register and failed, or simply given up on the process. But according to at least one who succeeded, the system needs improvement.

• “The SEC needs to create a friendlier environment for people trying to follow the law,” said Alan Silbert, CEO of North America for crypto exchange INX. on Twitter. “They need to promote registrations that have been struggling for too long.”

Between the lines: Given the mixed track record of the few who have signed up, the rewards have so far not opened the floodgates for others to apply.

• Quick take: Entrepreneurs will not follow the rules if it does not also create business survival.

The last: For the first time, SEC staff gave a list of firms that have obtained some form of registration with the agency. It was first given to a reporter with Fox Business and then confirmed to Axios.

Details: Here’s what’s happened with the various firms that have cooperated with regulators so far.

These companies are gone:

• Blockchain of Things, which made it easier to build apps on bitcoin. After 7.5 years, it announced that it was turning off at the end of February, and open source their work so far.
• ParagonCoin, which created a token for weed entrepreneurs. It also ran into trouble with an ICO and is long gone.
• YouNow, a live streaming company, registered its PROPS token. The company gave up its token in 2021.

These companies took new forms:

• Airfox (Carrier EQ), enabled users to earn prepaid mobile airtime with ads. It was fined by the SEC after failing to register its initial coin offering (ICO). Two years later, the Boston-based company was bought by a company in Brazil.
• Enigma MPC, a builder of privacy technology. Also registered out of a settlement over an ICO. The site is gone although the last blog post from 2020 said it would persist. Instead, the token swapped for SCRT and the firm rolled into the Secret Network, which is a blockchain with a market cap of $166 million.

These companies have continued:

What they say: Stuart Alderoty, the chief counsel of Ripple — a crypto firm that has been in a year-long battle with the agency — offered this advice in a Blockworks interview for new crypto companies: “Don’t launch it in the US.”

Our thought bubble: If compliance is a strategy for success, entrepreneurs will do it—but they get into business to succeed, not to comply.