The U.S. Securities and Exchange Commission (SEC) said on Tuesday, cryptocurrency It issued an investor warning that people should be wary of cryptocurrencies in their private retirement accounts, reiterating that their assets are often unregistered securities traded on unregistered exchanges.
The SEC said that self-managed retirement accounts sometimes offer crypto investments and that these “may be securities offered without SEC registration or a valid exemption from registration and may not be presented with complete or accurate information to help investors make informed decisions.”
SEC Warns Investors About Cryptocurrency Companies
The institution, which is waging this legal battle against the crypto industry on multiple fronts, has also warned investors about companies trading in cryptocurrency.
According to the investor alert, “Many of these crypto asset trading platforms refer to themselves as ‘exchanges’, which may give investors the false impression that they are registered with the SEC.”
Crypto industry lobbyists and corporate executives routinely argue that the SEC does not offer a realistic way to register a stock market, and many cryptos are not securities.
The regulator sued BlockFi for $100 million last year over its interest-bearing cryptocurrency account, and just last month Genesis and bitcoin exchange had filed a criminal complaint against Gemini for selling unregistered securities.
Gensler told Yahoo Finance in December that the SEC has filed more than 100 crypto sanctions lawsuits against crypto-related companies.
*Not investment advice.
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