SEC Reissues Crypto Warning

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The SEC has issued a renewed caution against FOMO (fear of missing out) crypto investing, just days before the expected approval of Bitcoin spot exchange-traded funds (ETFs).

On January 6, the SEC’s Office of Investor Education posted on X, reminding retail investors about the risks associated with digital assets, including meme stocks, cryptocurrencies, and non-fungible tokens (NFTs).

This warning was first issued in January 2021 during a period of high market activity, and was reiterated in March 2022 as markets began to cool down.

Speculation has emerged on social media that this warning may indicate the SEC’s impending approval of one or more spot Bitcoin ETFs, with a decision expected before the January 10 deadline.

The warning specifically mentions the influence of celebrities and athletes promoting crypto investments, cautioning investors against making decisions solely based on their endorsements.

The SEC has taken action against celebrities over the years, imposing fines and penalties for their involvement in promoting certain cryptocurrencies.