The SEC just warned investors that crypto assets are at risk of 'significant' losses after $2 trillion in market value was already erased

"The only money you should put at risk with any speculative investment is money you can afford to lose entirely," the SEC warned.

Highlights

SEC warned that cryptocurrencies could still spur significant losses for investors.
“The only money you should put at risk with any speculative investment is money you can afford to lose entirely,” the SEC warned.
The warning comes just one day after the SEC sent a Wells notice to Coinbase, indicating the largest US cryptocurrency exchange could be sued by the agency for potential securities violations related to its asset listings and staking products.
The SEC also highlighted that no crypto exchanges are registered with the SEC as a broker-dealer, exchange, or investment adviser — so investors may not get the protections afforded by the rules applicable to these entities, the SEC said.
“Fraudsters continue to exploit the rising popularity of crypto assets to lure retail investors into scams,” it warned.

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