SEC vs. FOMO. The United States Securities and Exchange Commission is supposed to protect investors. However, his strategy regarding the cryptocurrency market sometimes looks much more like the opposite. It is enough to see how it stirs up – by its slowness – speculations on its expected approval of spot Bitcoin ETFs. And while the market swings at the slightest doubt about a rejectionthe regulatory body plays the card of fight against FOMO. Welcome to the world of the pyromaniac firefighter…
High tension around approval of spot Bitcoin ETFs
This start of the year is marked by what everyone hopes will be an approval of spot Bitcoin ETFs by the US SEC. Is this a good thing for currency status initially associated with the creation of BTC? The question definitely seems to have faded into the background…
With on one side the boss of the SEC, Gary Gensler, presented as a politician little concerned with his role as regulator. And on the other hand, the giants of traditional finance are currently programming a colossal spill of money in this new paradigm of Bitcoin currently downloading.
And while everyone holds their breath over a approval planned by BlackRock for next Wednesday, tempers are heating up in the investor camps. The opportunity for the SEC to relaunch its “NO GO to FOMO” initiative in this period of strong speculative tension.
“Say “NO GO to FOMO” (fear of missing out). Just because others might buy a particular investment doesn’t mean it’s the right opportunity for you. Learn more about what’s right for you and your investment goals. »
The SEC opens the FOMO umbrella
The SEC has therefore officially expressed itself regarding the FOMO in a publication made on January 6 on his official X account. Because the current risk in the cryptocurrency sector is to see investors fall into the trap of fear of missing a historic opportunity. Even more so if we consider that approval of spot Bitcoin ETFs is already integrated into the current price of BTC.
This is probably why the regulator’s Investor Education Office has just issued caution. This is to inform individual investors of the risks associated with this type of behavior. With, in its sights, “the growing interest in online investment and the explosion of crypto-assets “. But also “meme actions”, whose popularity is artificially boosted by a certain popularity on the Internet. .
In the case of cryptocurrenciesthe SEC focuses more specifically on the case of Initial Coin Offering (ICO)very fashionable in… 2017. But also NFT presented “as digital ownership of something like artwork, sports memorabilia, photos, etc. » And in the field, the advice of the regulatory body deserves to be applied.
“You may see your favorite athlete, artist, or social media influencer promoting these types of investment opportunities. Although it is tempting, never make an investment decision based solely on their recommendations. »
DRY
Notable fact, no direct mention is made about Bitcoin in this list of recommendations for investors. However – according to his criteria – it is probably the current cryptocurrency which crystallizes a significant part of potential risks of FOMO. But perhaps its planned adoption by traditional finance will allow it to pass under this kind of radar. To be continued in the next episode…