Global: SEC Urges Investors to Be Cautious With Crypto Securities

The U.S. Securities and Exchange Commission (SEC) has urged investors to exercise caution when investing in crypto asset securities.

The agency’s Office of Investors Education and Advocacy warned the platforms offering crypto trading may not be complying with federal securities statutes.

“The law requires parties such as securities broker-dealers, investment advisers and exchanges to register with the SEC, a state regulator, and/or a self-regulatory organization,” the SEC said in a bulletin on Thursday (March 23, 2022). “Moreover, entities and platforms involved in lending or staking crypto assets may be subject to the federal securities laws.”