In his testimony, SEC Chairman Jay Clayton said significant security risks can arise by transacting in cryptocurrency and ICO markets. There is a possibility that investors will lose their investment and personal information due. Cybercriminals hack online trading platforms and individual digital asset wallets.
Clayton noted a study indicating that 10% or almost $400 million of proceeds generated by ICOs have been stolen by hackers. He also noted that hackers recently stole $500 million worth of NEM tokens from Coincheck, one of the biggest cryptocurrency exchanges in Japan.
According to him, the SEC issued investor alerts, bulletins, and statements to provide investors with additional information regarding ICOs and cryptocurrency-related investments.
Additionally, Clayton told senators that the SEC’s Enforcement Division is aggressively policing these markets. It is recommending enforcement actions against the bad actors in the cryptocurrency and ICO markets.
On the other hand, CFTC Chairman Christopher Giancarlo stated that cryptocurrencies “likely require more attentive regulatory oversight in key areas.” He believes that a serious examination of the virtual currency market is necessary.
