Crypto Surpasses Investors’ Threats to US Securities Regulators –

US federal securities regulators have revealed that cryptocurrency investments are their biggest threat to investors this year. “Before you jump into the crypto craze, remember that cryptocurrencies and related financial products may be nothing more than public fronts for Ponzi schemes and other scams,” a regulator warned.

Crypto is the biggest threat to US securities regulators

The North American Securities Administrators Association (NASAA) released its “annual list of top investor threats” on Monday.

Founded in 1919, NASAA is a nonprofit association of state, provincial and territorial securities regulators in the United States, Canada and Mexico. The association has 67 members, including securities regulators in all 50 U.S. states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

“The top threats to investors were identified through surveys of North American securities regulators to identify the most problematic products, practices or systems,” the association said. “Investments tied to cryptocurrencies and digital assets” top the list of threats cited most frequently by securities regulators, the association noted.

Alabama Securities Commission Director Joseph P. Borg commented:

NASAA securities regulators have shown that investments related to cryptocurrencies and digital assets are our biggest threat to investors.

He elaborated: “Stories of ‘crypto millionaires’ have attracted some investors this year to invest in cryptocurrencies or crypto-related investments coming in 2022.”

NASAA warned: "Digital assets do not fall neatly within the existing regulatory framework for investors, and it may be easier for promoters of these products to fleece the public. All investments involve the risk of losing some or all of the funds invested."

Texas State Securities Board Enforcement Division Director Joseph Rotunda warned:

Before you jump into the crypto craze, remember that cryptocurrencies and related financial products may be nothing more than public fronts for Ponzi schemes and other scams.

He continued: “Investments in cryptocurrency trading programs, holdings in crypto mining pools, crypto custodial accounts and securitized tokens should be seen for what they are: extremely risky speculation with a high risk of loss.”

What do you think about cryptocurrency investments being the biggest investor threat to US securities regulators? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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