Since its inception, Bitcoin has been shrouded in a bit of mystery. This is because it is a decentralized form of currency not regulated by any government or financial institution. So, does that mean that the SEC does not regulate Bitcoin? The short answer is no, the SEC does not regulate Bitcoin.
However, the SEC has been taking a closer look at Bitcoin and other cryptocurrencies as of late. In March 2018, the SEC released a statement warning investors about the risks associated with investing in digital currencies. The statement read, in part:.
“The world’s social media platforms and financial markets are abuzz about cryptocurrencies and initial coin offerings (ICOs). There are tales of fortunes made and dreamed to be made through investing in cryptocurrencies.
We are hearing the familiar refrain, ‘this time is different.'”.
The SEC went on to say that while there may be some potential benefits to investing in digital currencies, there are also “substantial risks” involved. These risks include the possibility of fraud or theft, as well as the volatility of prices.
The SEC also warned that ICOs “may be used improperly to entice investors with the promise of high returns in a new investment space.”.
So while the SEC does not currently regulate Bitcoin, it is something that they are keeping a close eye on. And given the recent increase in interest in cryptocurrencies, it’s likely that regulation will eventually come to this space.