The U.S. Securities and Exchange Commission (SEC) issued an investor alert on Tuesday warning that people should be wary of buying cryptocurrency in individual retirement accounts (IRA). This follows a long legal battle between the SEC and the crypto industry.
The SEC asserts that many of these cryptocurrencies are unregistered securities, and companies handling them may not provide accurate or complete information to investors.
The agency also cautioned investors about the unregulated crypto exchanges, saying they often refer to themselves as “exchanges” which may give people the wrong impression that they are registered with the SEC.
The industry however maintains that the SEC is not giving it a realistic pathway for exchange registration, and that many cryptocurrencies should not be regulated as securities. Whatever the outcome of the legal dispute, the SEC wants potential investors to be aware of the risks involved in buying cryptocurrency in a self-directed IRA.
Read more:
- Why XRP Can’t Be Classed As A Security Even If It Was Sold As One
- Crypto Whales Are Now Shifting Millions In XRP Cause Its Utilization