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SEC Unleashes Fury on Crypto in New Investor Alert

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Thu, 23/03/2023 - 17:37
SEC Unleashes Fury on Crypto in New Investor Alert
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The US Securities and Exchange Commission (SEC) has issued an investor alert, urging caution to those considering investing in crypto asset securities.

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The alert focuses on the lack of regulation in the crypto sector and highlights the risks associated with crypto investments, including their extreme volatility and the potential lack of important protections for investors.

The alert states that no crypto asset entity is registered with the SEC as a national securities exchange, and no existing national securities exchange currently trades crypto asset securities.

According to industry experts, the SEC is coming after the crypto industry "guns blazing."

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XRP Fate May Now Befall Tron (TRX) As SEC Sues Justin Sun, BitBoy Ponders
The SEC has been taking an aggressive stance against certain crypto entities. Earlier this week, it filed a lawsuit against Tron. Furthermore, it has issued a Wells notice to Coinbase, which is a formal notification that the agency intends to take enforcement action against the company.   

The alert covers several areas of concern, including the lack of registration of crypto asset entities, inadequate proof of reserves for stablecoins, investment advisor custody of crypto, and the absence of registered crypto exchanges.

Investors are warned that those offering crypto asset investments or services may not be complying with applicable laws. 

The SEC also highlights the importance of registration for securities offerings, which requires issuers to disclose key information about the company, the offering, and the securities offered to the public.

Unregistered offerings in crypto asset securities may not provide this information, potentially depriving investors of important details that could affect their investment decisions.

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