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Michael Arrington, a prominent crypto investor and founder of popular online portal TechCrunch, announced that his Arrington XRP Capital hedge fund would stop investing in tokens on US territory and most likely move to Asia until the Securities and Exchange Commission (SEC) clarifies its position and defines the game rules for the crypto industry.

“We received a second subpoena from the SEC, again collecting information from us as investors in a U.S. company. The legal costs of dealing with these are not insignificant. We will not invest in any further U.S. deals until the SEC clarifies token rules. Pivot to Asia,” Arrington wrote in his Twitter feed.

In comments to the tweet, he explained that the relocation plan is still sketchy as the company considers different jurisdictions, including Asia and Lichtenstein.

The TechCrunch founder believes the US has been left behind in the race for innovation inspired by cryptocurrencies and blockchain technology due to the SEC’s aggressive approach to cryptocurrency-focused companies.

Arrington has considerable experience with crypto-related investments. In November 2017, he launched the $100 million hedge fund Arrington XRP Capital denominated in Ripple’s XRP. Also, he has invested in various blockchain projects, including decentralized internet browser developer Blockstack. In September 2017, Arrington purchased an apartment in Kiev for 212.5 ETH ($60,000 at the time of the deal). Decentralized property marketplace Proppy, which has Arrington as an advisor, handled the purchase.

However, in March 2018, the entrepreneur got caught in a large-scale investigation the SEC initiated with the aim to prevent illegal security sales and fraudulent activities in the initial coin offering (ICO) market.

The community has condemned US cryptocurrency regulation for lacking clarity, which hampers the industry development and deprives US-based companies of a competitive edge. Startups and established enterprises focused on digital assets settle down in more friendly jurisdictions, leading to the outflow of innovations from the country.

Most large crypto companies are based outside the US. Asia is considered the top jurisdiction and is home to industry majors such as Upbit, OKEx, Huobi, BitFlyer, and BitMEX.