- The SEC Office For Investor Education And Advocacy has requested all investors to beware of cryptocurrency-related investments.
- The SEC requested investors to check with SEC resources to verify the legitimacy of an initial coin offering (ICO), initial exchange offering (IEO).
The United States Securities and Exchange Commission’s (SEC) Office For Investor Education And Advocacy has requested all investors to beware about cryptocurrency-related investments.
In a twitter post, the SEC requested investors to check with SEC resources to verify the legitimacy of an initial coin offering (ICO), initial exchange offering (IEO), or a cryptocurrency offering and to get further information on personalized investment options.
Wondering if a crypto, ICO or IEO investment is right for you, if it’s legal… or if it could be a scam? These resources can help: https://t.co/evPEJ4vEYc
— SEC Investor Ed (@SEC_Investor_Ed) February 23, 2020
The SEC has compiled a list of resources that are focused on guiding investors into making the right choices when investing in cryptocurrency offerings, ICOs, and IEOs.
The securities commission acknowledges that the market for cryptocurrencies and digital assets is booming significantly, and this might be a confusing stage for many investors. The resources compiled are meant to educate the investor on the right investment options and to verify the legitimacy of the offering.
This is a very welcome development from the part of the SEC since it shows that the office recognizes the growing need for more information on which offerings are compliant and registered with SEC regulations and which aren’t.
Staying regulated and recognized by the U.S. SEC is an important recognition that needs to be identified with every digital asset offering in order to make sure of the legitimacy.
As crypto has been taking off with the mainstream audience, it has also bolstered a number of fraudulent offerings in the market. The SEC has made its best attempts to clamp down on such fraudulent acts when recognized, but this has sparked major confusion amongst investors on what offerings are safe to invest in.
This compilation of resources should give investors a friendly hub where they can read up on new, SEC-recognize offerings on the market and whether they are worthy of investment.