Harkening back to the days of the dot-com bubble, investors are rapidly jumping on the bitcoin bandwagon. The cryptocurrency has gained has gained incredible interest as the price has skyrocketed from under $1,000 to over $19,000. Adding fuel to the fire, bitcoin futures began trading on the CBOE Futures Exchange and the CME also plans to allow futures trading.
SEC Chairman Jay Clayton recently issued a statement warning investors about the risks of investing in cryptocurrencies. “A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.”
In his statement, Mr. Clayton also reinforced the agency-position that the legality of a particular cryptocurrency is determined by the specific facts and circumstances of each case. The SEC Chairman said investors must do in-depth analysis to determine whether the products and offerings are legal.
What do you think? Are you concerned about bitcoin trading?
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