Dec 19, 2017 | News

The Bitcoin Ocean: Tread Carefully

The regulators have made known that investors and traders should tread carefully when trading bitcoin or any other cryptocurrency. On Dec. 11, SEC Chairman Jay Clayton gave his two bitcoins and provided Main Street investors a guide and warning to jumping into cryptocurrency investing. The CFTC, with two exchanges already trading the futures product, gave its interpretation of the “actual delivery” of virtual currencies. In addition, CFTC Chairman J. Christopher Giancarlo commended the SEC chairman, stating:

“I commend SEC Chairman Clayton on his strong statement encouraging professional market participants and the retail investors they serve to recognize risks and legal responsibilities they have regarding cryptocurrencies and initial coin offerings. I have said consistently that virtual currencies are unlike any commodity that the CFTC has dealt with in the past, and I know they pose challenges for the SEC as well. CFTC and SEC staff are in regular communication on these issues. I want to reiterate my previously stated emphasis that market participants should take note that the relatively nascent underlying cash markets and exchanges for bitcoin remain largely unregulated markets over which the CFTC has limited statutory authority. Investors should be aware of the potentially high level of volatility and risk in these markets.”

If you are thinking of starting a crypto fund, please give Mike a call at 630-351-8942 or email