The United States Securities and Exchange Commission decided to take some proactive steps in promoting the education of investors. On 3 April, the SEC announced a program named “Free Education Investor Resources. It is a part of “Financial Capability Month”.
In March 2021, the White House announced that April will be celebrated as Financial Capability Month for financial education. April was recognized as National Financial Capability Month to showcase the value of high-quality financial education to improve Americans’ financial capability. Under this program, the SEC launched free investors’ resources through investor.gov. to facilitate various investors which includes free crypto warnings.
According to SEC chairman Garry Gensler, if you want to become an effective investor then you need to have information about the related terms. Additionally, the SEC workforce will also participate in the investors’ education summits across the country. Several stakeholders like students, government officials, the military, and the police will be the targeted audience under this program.
In the United States, people make their investments to gain some profits, for example, if someone retires from the service he seeks to invest in post-retirement plans, and parents for their ward’s education in the future. To protect these stakeholders it is necessary to make them aware of the key issues related to investment.
With more and more clients shifting their focus to crypto investment, authorities trying to warn them about the risks associated with it. The SEC also brings crypto warnings in their investor’s education resources.
The step to bring crypto warnings into the investor’s education resources under financial capability month is a commendable step but it might be an anti-crypto agenda of the Securities and exchange commission. It also warned that few companies are risky to crypto investment as they are not complying with the existing laws.
In March 2023, two United States lawmakers, Senator Cynthia Lummis, and Representative Patrick McHenry criticized the SEC for the Staff Accounting Bulletin (SAB), which guides accounting treatment for digital assets. According to senators, these guidelines will discourage companies from involving in digital asset custody by placing customer assets at greater risk of loss
The collapse of the three biggest crypto-friendly banks, the Silicon Valley Bank, the Silvergate Bank, and the Signature Bank in the United States forced agencies to scrutinize their existing crypto regulation frameworks. Additionally, the United States has not recognized crypto assets as securities; this move of the SEC will force crypto investors to turn towards traditional finances.
