US SEC Continues Investigation on Cryptocurrency Market
The US Securities and Investment Commission (SEC) is still focusing its attention on the cryptocurrency market. The former chairman of the SEC said that the agency's investigation on suspicious behavior on the cryptocurrency market is still ongoing and will not end in the near future.
Harvey Pitt, the SEC's former chairman, talked about the agency's investigation during a recent interview with CNBC. Pitt said that the SEC will focus on suspicious cryptocurrencies. He said that:
“We’re in line for some serious regulatory responses to all of this and that will be forthcoming after the first of the year.”
Further regulation might be released on the cryptocurrency market
Pitt also explained that the high price increase experienced by several cryptocurrencies will trigger further regulation on this market. According to Pitt, everyone seems to be interested in investing on this market and not everyone seems to know what they are investing in. Pitt explained that:
“That’s a real problem because there’s a lack of education and knowledge on the part of many of the people who are actually doing the investing.”
Pitt also explained that in many cases insider trading could be found in relation to trading on the cryptocurrency market, which is definitely under SEC's authority.
The fact is that until now the SEC has decided to intervene in relation to some cryptocurrency exchanges. For instance, the agency ordered this week The Crypto Co. exchange to halt trading over concerns of market manipulation.
The SEC also warned on the existence of tokens that operate like securities. The SEC previously suspended trading in three stocks due to risks linked to their ICOs.
The Financial Industry Regulatory Authority previously also warned investors of potential stock scams which could put them at risks when buying shares of firms that promise high returns.
The authority went to issue a guideline for investors, which they can use for information and avoid becoming scam victims. The authority also asked investors to exert precaution when making investment decisions.
