The Sanctuaries and Exchange Commission warned Thursday that investors should “execution caution” with cryptocurrencies like bitcoin, noting state and federal regulators may not be superior to recoup any lost investments from illegal actors.
Many promoters of approve coin offerings (ICOs) and other cryptocurrency investments are not following federal and official securities laws, SEC Chairman Jay Clayton and Commissioners Kara Stein and Michael Piwowar signified in a statement. While regulators are trying to police these quickly breed markets, the SEC urged investors to be vigilant.
“The SEC and state securities regulators are pursuing violations, but we again vigilance you that, if you lose money, there is a substantial risk that our troubles will not result in a recovery of your investment,” the officials said.