SEC Releases Statement On Cryptocurrency Risks

Jay Clayton, the Chairman of the United States Securities and Exchange Commission, said in a statement that investors need to be wary of Bitcoin investing. Bitcoin and Initial Coin Offerings have become extremely popular in the past few months. There are stories of people becoming extremely wealthy in just a matter of days or weeks. However, people have to ask themselves some questions before they get involved in Bitcoin.

First of all, you need to know if the product is legal. You also need to know if the trading platform is legal, meaning if it is regulated. You also want to know if the trading platform is secure or if it can be manipulated. You also want to make sure that the platform cannot be hacked and that your information or money cannot be stolen.

The United States Securities and Exchange Commission is making it clear that there are no Initial Coin Offerings that have been registered with the United States Securities and Exchange Commission. If you are a Main Street investor, you need to be aware of the fact that there is a bigger risk when it comes to bitcoin investing.

If you are a market professional, such as a professional investor, then ICOs can presents benefits. You can gain funding for a venture. However, you need to be aware that the ICO needs to have the proper disclosures and forms in place. Regulators have been taking a closer look at Bitcoin lately.