The first one was published on July 23, 2013, and was titled “Investor Alert: Ponzi Schemes Using Virtual Currencies”. In this article, the Commission warns investors about
Despite the date of publication, apparently not much has changed for the Commission as their latest bulleting on BTC claims the following:
investors should consider the volatility of Bitcoin and the Bitcoin futures market, as well as the lack of regulation and potential for fraud or manipulation in the underlying Bitcoin market.
The SEC clarifies that
The regulator claims that all platforms offering this product to U.S. citizens must comply with certain legal requirements. Caitlin Long, part of the state of Wyoming Blockchain Select Committee,
SEC is issuing this investor warning re onshore exchanges, which offer only about 2.5x leverage–just imagine how it views offshore exchanges offering >100x leverage.
At the time of writing, BTC trades at $36,872 with sideways movement in the 1-hour and 24-hour charts. In the derivatives sector, funding rates across exchange platforms have flipped from positive to negative and vice versa during the past few days.
Thus, the general sentiment in the market seems to be following the price action; there is no clear direction. In the short term, BTC must reclaim the higher area around current levels and make a push towards the $40,000 price mark.
The SEC and other U.S. government officials and federal entities have been hitting the market with many negative announcements. From the SEC bulletin to the Department of State’s statements on a BTC ransom recovered from hackers. The market has been susceptible to this news but seems more impervious to their effects.