Rise in privately funded crypto unicorns worries SEC commissioner

The growth of private capital markets in recent decades is an issue that calls for greater transparency, at least according to one leader of the Securities and Exchange Commission (SEC). 

In an October 12 speech, SEC Commissioner Allision Herren Lee called out the increase in private capital — and said the rise of crypto-related "unicorns" reflects the trend.

Since 2009, private capital raises have exceeded public raises. The situation has resulted in the growing number of "unicorns," a term that refers to private companies with valuations of over $1 billion. Lee called unicorns "a new, but no longer rare or mythical, kind of business."

"Despite their outsize impact, there is little public information available about their activities," she continued. "Although some of these large firms are subject to industry-specific regulation, such regulation may be quite sparse (as with the growing number of crypto-related Unicorns) or does little to address financial transparency."

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