The United States Securities and Exchange Commission (SEC) has issued a warning about investing in crypto. The agency cites volatility and a lack of crypto asset investor protection measures.
The United States Securities and Exchange Commission (SEC) issued a notice on March 23, cautioning investors about crypto assets securities. The SEC’s Office of Investor Education and Advocacy stated that crypto investments can be “exceptionally volatile and speculative, and the platforms where investors buy, sell, borrow, or lend these securities may lack important protections for investors.”
The latter point was the gist of the notice, which echoes sentiments that officials from the agency have made in the past. Some in the crypto community have even said that SEC Chair Gary Gensler and others have launched a hostile mission against crypto exchanges and companies.
The SEC and its executives counter such remarks by saying it is merely attempting to protect investors. While many crypto companies have acknowledged that the crypto market does need more rules, it disagrees with the SEC’s regulation-by-enforcement approach.
Coinbase was the most recent crypto company to add this to the discussion after it revealed that the SEC had sent it a Wells Notice. The popular exchange has been trying to work with the SEC on regulations.
Lack of Clarity on Regulation by the SEC a Major Hurdle
In the notice, the SEC states that no crypto exchange has regulated itself in the market. The registrants include broker-dealers, investment advisers, alternative trading systems (ATS), and, of course, exchanges. The SEC also makes note of lending and staking of crypto assets.
However, crypto companies have urged the SEC to offer more clarity on regulation so that they may better operate within the law. This has been a major pain point for the industry, which continues to do everything it can to win agencies over.
El Salvador Removes Tech Tax as Others Look to Tax Crypto
Meanwhile, a few other countries are going all in on regulating the crypto market. Some are even going so far as to eliminate taxes, as in the case of El Salvador. The latter is arguably the country that is the most gung-ho about cryptocurrencies, having made bitcoin legal tender.
That is in sharp contrast to countries like the United States and India. The former is currently reading a 30% tax on crypto mining usage, while India has imposed heavy taxation on crypto trading.
As it stands, most countries are working on CBDCs, or at least researching them. Private cryptocurrencies are something that most governments appear to oppose.
Disclaimer
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.
