The SEC and CFTC are not sabotaging the cryptocurrency scene. They are, however, alerting the public of potential risks involved in the burgeoning market.
SEC Talks Cryptocurrencies At Federal Hearing
SEC Chairman Jay Clayton and Commodity Futures Trading Commission Chairman Christopher Giancarlo testified today before the Senate Banking Committee. The men delivered some insight into the SEC and CFTC’s thoughts on cryptocurrency and potential future regulations.
“These warnings are not an effort to undermine the fostering of innovation through our capital markets. America was built on the ingenuity, vision and spirit of entrepreneurs who tackled old and new problems in new, innovative ways,” Jay Clayton said at a recent Senate Banking Committee.
SEC Cautions Investors About ICOs
Clayton also issued an ICO warning. He advised investors to “think twice” before investing in cryptocurrencies and ICOs. “Bad actors,” he cautioned, can “commit age-old frauds with new technologies,” which could be very dangerous for consumers and investors.
“I think our main street investors look at these virtual currency platforms and assume they are regulated in the same way that a stock is regulated and as I said it’s far from that and I think we should address that.”
Senator Mark Warner, who has demonstrated his familiarity with the topic, called for a “coordinated effort” among the existing regulatory bodies to which Clayton and Christopher Giancarlo (Chairman of the CFTC) both agreed. Warner then said “The potential writ large amongst crypto assets and the underlying blockchain could be as transformational as wireless was years ago. I think we’re going to need a much more coordinated effort.”
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