Key Points:
According to the agency, unregistered offers of such securities may not disclose crucial facts, such as audited financial statements, for informed decision-making.
“The risk of loss for individual investors who participate in transactions involving crypto assets, including crypto asset securities, remains significant. The only money you should put at risk with any speculative investment is money you can afford to lose entirely,” the agency said in a statement.
The Securities and Exchange Commission has tightened down on the cryptocurrency business, which its head has described as a Wild West plagued with fraud. The SEC has already sought to establish that many cryptocurrency exchanges are operating in the United States as unregistered securities exchanges. This is a point of view commonly expressed by Gary Gensler, the chairman of the agency.
The agency’s Office of Investor Education and Advocacy cautions that crypto trading platforms may not be in compliance with federal securities laws.
With the demise of Sam Bankman-Fried’s empire FTX in early November of last year, the commission has grown more strident in tightening rules on the crypto industry.
Coinbase previously revealed that it had received a Wells notice, which is a formal statement by the SEC staff that they plan to propose an enforcement action.
The agency also advises investors in an investor advisory about proof of reserves services provided by certain crypto exchanges, which are intended to allow users to verify that an exchange has enough assets to back customers’ holdings.
Coinbase also requested clarification from the SEC that basic staking services are not securities in comment letter. The letter was sent in response to the agency’s proceedings in February over Kraken’s staking program. The exchanger alleges that the SEC statement on staking services language violates the Kraken settlement and seeks that the agency clarifies that core staking services are not securities.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Harold
Coincu News
So, you’re on the lookout for the next big thing in crypto? Aren’t we all?…
Miami, Florida, 13th November 2024, Chainwire
Robinhood Crypto has expanded its U.S. platform with the addition of Solana, Pepe, Cardano, and…
If you’ve been following the crypto space, you already know that Chainlink (LINK) has been…
BlackRock BUIDL funds have been expanded to Arbitrum, Aptos, Avalanche, Optimism, and Polygon.
Tokyo-based Metaplanet Bitcoin holdings grew by $28 million, doubling to 1,018.17 BTC since late September.
This website uses cookies.