Investing.com - U.S. Securities and Exchange Commission Chairman Jay Clayton on Monday warned investors of the dangers of putting money into cryptocurrencies, as crypto-mania swept markets with the launch of bitcoin futures.
Clayton said in statement that trading and public offerings in the emerging asset class may be in violation of federal securities law.
The warning came as the SEC intervened to halt a $15 million initial coin offering.
Munchee, a food review app, on Monday cancelled its ICO which was aiming to raise $15 million, after the company failed to register it as a security.
Clayton’s warning was followed by statement from the head of the Commodity Futures Trading Commission who said investors should be aware of the “potentially high level of volatility and risk” in these markets.
Bitcoin surged to a record high of $17,270 on Monday, up from around $1,000 at the beginning of the year as Cboe Global Markets launched bitcoin futures trading.