SEC warns of the risks of investing in bitcoin, but does not prohibit anything


The US Securities and Exchange Commission (SEC) called Bitcoin a “highly speculative investment” and warned of the risks. The SEC’s Investment Management Department has prepared and published a warning for investors on working with funds that have access to Bitcoin.

“We strongly urge any investor interested in investing in funds with access to the bitcoin futures market to carefully study the risks indicated by the fund, their own openness to risks and the possibility, as with any other investment, to lose their invested funds,” the SEC notes, adding that bitcoin is a “highly speculative investment”, writes ttrcoin.

Investors should take into account the volatility of the bitcoin and bitcoin futures markets, as well as weak regulation and opportunities for fraud or manipulation in the underlying bitcoin market, the SEC warned.

Organizers of closed-ended funds that do not allow the withdrawal of assets on a daily basis are encouraged by the SEC to contact her for advice before applying for registration. At the same time, the notice notes that it has no legal force and serves as a reflection of the opinion of the department’s employees.

Last week, new SEC chairman Gary Gensler approached Congress with a proposal to develop a legal framework to regulate the cryptocurrency industry.

“The $ 2.5 trillion crypto asset market could benefit from increased investor protection. Now there is no market regulator that would deal with these exchanges. Accordingly, there is no real protection against fraud or manipulation, ”said Gensler.

In general, the arrival of the new head of the SEC is associated with positive expectations. He is considered to be someone who understands cryptocurrencies. Gensler taught a course on cryptocurrencies and blockchain at the Massachusetts Institute of Technology, of which he is a professor.

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