Crypto Assets
You should know that those who are offering crypto asset investments or services may not be in compliance with applicable law, including federal securities laws. These investments also can be speculative, risky, and volatile. If you are considering an investment opportunity involving crypto assets, you may be wondering if it is legal, if it is right for you, or even whether it might be a scam. We urge you to be cautious in considering whether crypto asset investments are appropriate for you.
- Bitcoin and Ether Futures ETPs provide exposure to the price of bitcoin and/or ether by holding futures contracts based on the crypto asset(s). These futures ETPs primarily are structured as exchange-traded funds (ETFs).
- Spot Bitcoin and Ether ETPs provide exposure to the price of bitcoin or ether by holding the crypto asset itself. Spot bitcoin and ether ETPs are structured as exchange-traded commodity trusts. They are not ETFs that are registered under the Investment Company Act of 1940.
Here are some resources to help you better understand these complex topics:
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Exercise Caution with Crypto Asset Securities: Investor Alert Protect yourself and exercise caution with crypto asset securities. Read this Investor Alert to learn more. |
Be cautious with celebrity endorsements of investment products. Watch this video to learn more. |
SEC Crypto Assets and Cyber Enforcement Actions Learn about actions involving crypto assets that the SEC’s Division of Enforcement has brought. |
Many relationship investment scams involve crypto assets.
In relationship investment scams, fraudsters — including criminals and other bad actors — often hide their true identities, reach out to unsuspecting targets (often online or through text messages), gain their trust over time, and then defraud them through fake investments.
Relationship investment scams are sometimes referred to by various terms including romance scams, “cryptocurrency” investment scams, financial grooming scams, and even the distasteful term “pig butchering scams.” Learn more about these types of scams and how to avoid them in this joint Investor Alert issued by the SEC’s Office of Investor Education and Advocacy, the CFTC’s Office of Customer Education and Outreach, FINRA, and NASAA.
Learn More
Additional Information
- FBI Public Service Announcement: Fictitious Law Firms Targeting Cryptocurrency Scam Victims Offering to Recover Funds (June 2024)
- Digital Asset and “Crypto” Investment Scams (Sept. 2021)
- Funds Trading in Bitcoin Futures (June 2021)
- Initial Exchange Offerings (IEOs) (Jan. 2020)
- Beware of Claims That the SEC Has Approved Offerings (Apr. 2019)
- The SEC Has an Opportunity You Won’t Want to Miss: Act Now! (May 2018)
- Statement on Potentially Unlawful Online Platforms for Trading Digital Assets (Mar. 2018)
- SEC Statement Urging Caution Around Celebrity Backed ICOs (Nov. 2017)
- Celebrity Endorsements (Nov. 2017)
- Public Companies Making ICO-Related Claims (Aug. 2017) (also available in Spanish, Las empresas públicas que hacen declaraciones relacionadas a las ICO.)
- Initial Coin Offerings (July 2017) (also available in Spanish, Oferta inicial de criptomonedas.)
- Bitcoin and Other Virtual Currency-Related Investments (May 2014)
- Ponzi Schemes Using Virtual Currencies (July 2013)
- Strategic Hub for Innovation and Financial Technology
Contact Us
- Call us at 1-800-732-0330
- Report a possible securities fraud
- Use our online forms to ask a question or report a problem concerning your investments
- Email us at Help@sec.gov
- Write us at:
U.S. Securities and Exchange Commission
Office of Investor Education and Advocacy
100 F Street, NE
Washington, DC 20549-0213
