In a series of educational events, the US Securities and Exchange Commission (SEC) will promote financial literacy, while urging people to be “cautious” with crypto projects investments
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In an April 3 announcement, the SEC revealed the themes for educational events to be conducted within April’s National Financial Capability Month. It appears that one of the regulator’s main points would be to urge investors “exercise caution” while dealing with crypto.
Not only would the SEC explain underrepresented communities and social groups such as high school students, members of the military, older investors, women groups and native Americans the details of federal securities laws and how they apply to crypto, but also the agency stresses out the “speculative” nature of crypto assets.
The SEC’s free tools and resources include the guidelines on “how to avoid becoming a victim of fraud” involving cryptocurrencies. Besides, the regulator frequently reiterates the following idea, when referring to crypto assets: “The only money you should put at risk with any speculative investment is money you can afford to lose entirely.”
Despite the common nature of such educational events, the announcement is accepted with criticism as many crypto space players are bewildered by the financial regulator’s claims that it wants firms to “come in and talk” while continuing to take enforcement actions.
Earlier this month, Coinbase became the second crypto firm to receive SEC Wells Notice. The firm said that potential enforcement actions would relate to aspects of the company’s spot market, the Coinbase Earn betting service, Coinbase Prime and Coinbase Wallet. Notably, the notice appeared despite meeting with SEC representatives “more than 30 times over nine months.”
In February, SEC proposed tougher rules for crypto custodians, making it much harder for crypto trading platforms to provide custody services. That, and other instances of the SEC’s crackdown on all possible aspects of the crypto industry in the US, led to the surge of crypto outflows earlier this year.
Not only the SEC, but also other US regulators and law firms have been exercising their powers over the crypto industry lately, targeting crypto-friendly banks, exchanges and influencers alike.
