SEC’s Investor Alert on Crypto Asset Securities Impacts Crypto Community

Published 09/12/2023, 10:32
Updated 09/12/2023, 10:45
SEC’s Investor Alert on Crypto Asset Securities Impacts Crypto Community
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Coin Edition -

  • The SEC reposts their previous Investor Alert on crypto asset securities.
  • Thinking Crypto Founder Tony Edward criticizes the SEC for their unclear crypto rules.
  • Coinbase (NASDAQ:COIN) Director Conor sheds light on the impact of the regulator’s stance against crypto.

Prominent voices from the crypto space came forward questioning the US Securities and Exchange Commission’s (SEC) caution against crypto asset securities. Thinking Crypto Podcast Founder and Host Tony Edward censured the regulator, reflecting on their non-comprehensive crypto norms.

In a recent tweet, Edward shared a significant question on the clear definition of “Crypto Asset Securities.” He alleged that the SEC hadn’t provided clear guidelines on the matter. Further, he criticized the SEC Chair Gary Gensler’s unclear stance on Ethereum’s status, stating, “Scumbag regulator Gary Gensler can’t even answer Congress on if Ethereum is a security or not.”

Previously, in March 2023, the SEC issued an “Investor Alert” on Crypto Asset Securities, warning, “Those offering crypto asset investments or services may not be complying with applicable law, including federal securities laws.” The agency added that the sale of unregistered securities may not provide customers with adequate information on the asset, including audited financial statements.

Thinking Crypto Founder’s tweet came in response to a post shared by the SEC’s Office of Investor Education and Advocacy, known on X as SEC Investor Ed. Resharing their previous advisory note, the SEC_Investor_Ed wrote on X, “Investments in crypto asset securities can be exceptionally risky and are often volatile.”

Another prominent figure who responded to the SEC’s caution was Coinbase Director Conor. He shed light on the impact of the regulator’s caution in the crypto economy, shedding light on Robinhood’s liquidation of 1.69 million SOL that cost retail investors $100 million at the current price. In June, Robinhood discontinued support for altcoins, including ADA, MATIC, and SOL, and sold these tokens, which were valued at $583 million.

The post SEC’s Investor Alert on Crypto Asset Securities Impacts Crypto Community appeared first on Coin Edition.

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