SEC Warns Investors on Cryptocurrency Exchanges

“The SEC is going to regulate not only the products but the places where they trade and who trades them,” said Tyler Gellasch, a former SEC official who is now executive director of Healthy Markets Association, an investor-backed trade group. “There ought to be some pretty deep soul searching for those operating some of these trading platforms.”

The statement, jointly issued by the agency’s enforcement division and its trading and markets division, shows the regulator’s interest in policing the worst abuses through litigation while nudging the broader industry toward regulated status, Mr. Gellasch said. “I’d expect the SEC is already eyeing up cases of potential abuse and would probably go after platforms related to those,” he said.

Read more in the Wall Street Journal.

Reader Interactions