SEC will host investor education activities

The United States Securities and Exchange Commission (SEC) has announced series of educational events aimed at underrepresented communities and others, with the implication that participants will be taught to “exercise caution” when investing in cryptocurrencies.

The SEC announced on April 3 that it will reach out to high school students, military personnel, older investors, and native Americans to promote financial literacy. However, the financial regulator suggested that its approach to such events could include “how to avoid becoming a victim of cryptocurrency fraud.”

The SEC referenced as one of its resources an alert from March 23, in which the regulator urged individuals to be “cautious” when considering investments in crypto projects that may qualify as securities under the regulator’s jurisdiction:

“The only money you should put at risk with any speculative investment is money you can afford to lose entirely.”

Since April was designated National Financial Capability Month in 2003, government agencies in the United States have been promoting similar financial literacy initiatives. This month is celebrated annually as National Financial Capability Month. National Financial Capability Month is observed every year during the third month of the year.

 

Many people, both inside and outside of the cryptocurrency industry, have voiced their disagreement with the assertion made by the financial regulator that it wants companies to “come in and talk” while at the same time continuing to take enforcement actions. This assertion has been met with criticism from a variety of individuals.

Coinbase, a cryptocurrency exchange based in the United States, disclosed on March 22 that it had received a Wells notice from the SEC despite meeting with representatives “more than 30 times” over nine months.

Gary Gensler, chairman of the Securities and Exchange Commission, has requested $2.4 billion in funding for the 2024 fiscal year, citing the need for “new tools, expertise, and resources” to combat misconduct in the crypto space.