The U.S. The Securities and Exchange Commission (SEC) has issued another warning bulletin for Bitcoin investors. In particular, the Commission has warned of the dangers for BTC futures traders and urged them to “carefully weigh the potential risks and benefits of the investment”.
The bulletin titled “Fund Trading in Bitcoin Futures” is part of a long list of these articles dealing with cryptocurrencies and digital assets.
The first was published on July 23, 2013 and was entitled “Investor Alert: Ponzi Schemes Using Virtual Currencies”. In this article, the commission warns investors about Bitcoin and explains in detail the characteristics of a Ponzi program, a type of scam in which existing participants received payments from new contributors.
The SEC classified these schemes as illegitimate investments and claimed to be concerned about scammers using Bitcoin to commit or facilitate this scam. In addition, the SEC claimed that the exchange platform could also be part of the illegal system.
Despite the date of publication, not much has apparently changed for the commission as their latest bullet point on BTC claims:
Investors should consider the volatility of Bitcoin and the Bitcoin futures market, as well as the lack of regulation and the potential for fraud or manipulation of the underlying Bitcoin market.
Bitcoin attack by more FUD
The SEC clarifies that BTC has been classified as a commodity in the United States. Therefore, futures contracts must be traded by the Commodities and Futures Trading Commission (CFTC) with a “regulated and supervised” body.
The regulator claims that all platforms offering this product to US citizens must meet certain legal requirements. Caitlin Long, part of the Wyoming State’s Blockchain Select Committee, said:
The SEC issues this investor warning for onshore exchanges that only offer about 2.5x leverage – imagine how it sees offshore exchanges that offer> 100x leverage.
At the time of writing, BTC is trading at $ 36,872 with sideways moves on the 1-hour and 24-hour charts. In the derivatives sector, the financing rates across the exchange platforms have turned from positive to negative and vice versa in the last few days.
BTC with small losses in the daily chart. Source: BTCUSD Tradingview
Thus, the general market sentiment seems to follow the price movement; there is no clear direction. In the short term, BTC needs to recapture the higher area around the current level and push towards the $ 40,000 price mark.
The SEC and other US government officials and federal agencies have come out with many negative announcements. From the SEC bulletin to the State Department’s statements about a BTC ransom stolen by hackers. The market has been vulnerable to this news but appears less sensitive to its effects.
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