On Monday, the United States Securities and Exchange Commission (SEC), took another step in direction of what it calls investors protection against cryptocurrencies. The regulator has often appeared to be cold towards cryptocurrencies and does not appreciate their promotion.
The SEC announced a program called “Free Investor Education Resources” during “Financial Capability Month.” National Financial Capability Month is observed during the month of April every year. It is a time to highlight the value of high-quality financial education to improve Americans’ financial capability.
With this new step, the SEC has continued its crusade against crypto. The SEC’s latest investor awareness resources come with free crypto warnings included. The regulator counts on this move to promote the free tools and resources available on its website, investor.gov.
Furthermore, the staff at the SEC are going to participate in investor education events across the country. The regulator stated that these steps aim to attract audiences from all groups irrespective of their age or representation, including students, underrepresented communities, older investors, and the military. In addition, Gary Gensler, chairman of SEC commented:
To be an informed investor is to be a more effective investor, and I encourage the public to take advantage of the many resources we offer.
However, it is important to note that even though the SEC’s focus is on protecting investors, a part of the education drive includes an anti-crypto agenda. It aims to teach investors how to avoid being victims of fraud, and directly linked to that is a warning about crypto.
Additionally, the announcement also connects to a recent article on the regulator’s website regarding caution with cryptocurrencies. The article was titled “Exercise Caution with Crypto Asset Securities: Investor Alert.”
As reported by Todayq News, in the notice, the SEC’s Office of Investor Education and Advocacy cautioned investors about crypto asset securities. The regulator 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.”
While Congress has not officially classified crypto assets as securities, the recent move is yet another step by Gensler and his team to crack down on the crypto community and urge investors to put their money into traditional assets. The SEC fear-mongering continued in the “educational article” as it stated:
The risk of loss for individual investors who participate in transactions involving crypto assets, including crypto-asset securities, remains significant.
However, Gensler’s anti-crypto stance is no surprise as the regulator has reiterated this in various instances. Despite being severely criticized for its regulation via enforcement approach, the regulator expressed its desire to expand its digital assets enforcement team.
In the past weeks, the SEC has continued to crack down on some of the largest exchanges like Kraken, Paxos, and even Coinbase. The regulator accused Coinbase of violating federal laws to which its executives expressed their agony and accused it of being responsible for the US losing its position as the crypto hub.
Notably, the recent move is a part of the SEC’s larger antagonistic approach towards cryptocurrencies. Despite the highlighted need for crypto regulations by lawmakers, regulators as well as the crypto community, just last week, Gensler completely downplayed the need. He said that rules for the cryptocurrency market already exist but that the industry is still “rife with noncompliance” while testifying in front of the lawmakers.