Washington – The Securities and Exchange Commission (SEC) warned on Thursday that investors should be cautious about crypto derivatives such as bitcoin , noting that state and federal regulators may not be able to recoup the lost investments .
Many initial currency offer promoters (ICOs) and other crypto-currency investments do not follow federal and state securities laws, SEC chief Jay Clayton and commissioners Kara Stein and Michael Piwowar said in a statement .
As regulators try to police these fast-growing markets, the SEC urged investors to stay vigilant.
“The SEC and state securities regulators are investigating violations, but we again warn that if you lose money there is a substantial risk that our efforts will not result in a recovery of your investment,” the official said.
Join the newsletter to receive the latest updates in your inbox.