The U.S. Securities and Exchange Commission (SEC) Warning to investors On Thursday, it cautioned against cryptocurrency securities, saying companies offering crypto investments may not be complying with U.S. law.
The SEC also said an unregistered offering of cryptocurrency securities may not provide investors with important information for informed decision-making, including audited financial statements.
The SEC further added, “Investing in cryptocurrency securities can be extremely risky and is often irrelevant as many major platforms and cryptoassets have become insolvent or lost value in the past year. It may stabilize,” he warned.
Scammers are taking advantage of the growing popularity of crypto assets to lure retail investors into fraud, often leading to devastating losses, the SEC said.
“It is never a good idea to make an investment decision just because a celebrity says a product or service is a good investment. It is not meant to be legal. SEC added.
The agency urged crypto investors to plan their investments and understand their risk tolerance and time horizon.
COINBASE Shares Widen Losses After Crypto Exchanges Explain SEC Probe
The SEC warning came after securities regulators sent Coinbase a “Wells Notice” in which SEC staff made a “preliminary decision” to the cryptocurrency exchange and the SEC filed a complaint against the company for alleged violations. It indicates that we have notified you that we recommended that you take enforcement action. Federal Securities Law.
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Global regulators are paying close attention to the crypto sector after a massive collapse that saw more than $1 trillion disappear from the market cap of the digital asset industry in 2022.
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