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US Senators Demand SEC Halt Crypto ETP Approvals Due to Disclosure Concerns

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US Senators Demand SEC Halt Crypto ETP Approvals Due to Disclosure Concerns

The Securities and Exchange Commission (SEC) is facing
pressure from Democratic senators to halt the approval of new cryptocurrency
exchange-traded products (ETPs), citing concerns over risks to retail
investors.

According to a letter written to the regulator on
March 11, Senators Jack Reed and Laphonza Butler emphasize the dangers posed by
inadequate disclosures by brokers and insufficient liquidity in major
cryptocurrencies.

The senators mentioned: “We write to urge the
Securities and Exchange Commission (SEC) to take steps to protect investors
following its recent approval of the listing and trading of certain spot
Bitcoin exchange-traded products (ETPs).”

“The SEC’s approvals have provided a green light
for Wall Street to sell volatile cryptocurrency investments to ordinary
Americans through their brokerage and retirement accounts.”

Senators Reed and Butler highlighted findings from a
survey by FINRA revealing that 70% of brokers’ communications with retail
investors violated fair disclosure rules.

Specifically, the legislators expressed alarm over
brokers falsely equating cryptocurrency with cash and providing misleading
explanations of cryptocurrency risks. Such deficiencies raise concerns about
incomplete and deceptive information regarding Bitcoin ETPs.

Risk Factors

The senators argue that labeling spot Bitcoin ETFs as such obscures important characteristics,
potentially misleading retail investors. They stressed the need for investors
to understand the differences between ETPs and traditional funds.

Additionally, Reed and Butler expressed skepticism
about the integrity of cryptocurrencies , particularly highlighting Bitcoin’s
vulnerabilities and susceptibility to fraudulent schemes. They warned of the risks retail investors could face
from ETPs linked to cryptocurrencies, especially those prone to price
manipulation.

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In January, the SEC approved 11 spot Bitcoin ETFs.
This approval happened after years of anticipation and rejections, signaling a
significant shift in how investors can access and engage with cryptocurrencies
on traditional financial platforms.

The approval of spot Bitcoin ETFs simplifies retail
investors’ access to cryptocurrencies, enabling them to trade crypto through
their brokerage accounts. This eliminates the need for separate crypto exchanges
and mitigates risks associated with direct holdings, such as security breaches
and fraud.

The Securities and Exchange Commission (SEC) is facing
pressure from Democratic senators to halt the approval of new cryptocurrency
exchange-traded products (ETPs), citing concerns over risks to retail
investors.

According to a letter written to the regulator on
March 11, Senators Jack Reed and Laphonza Butler emphasize the dangers posed by
inadequate disclosures by brokers and insufficient liquidity in major
cryptocurrencies.

The senators mentioned: “We write to urge the
Securities and Exchange Commission (SEC) to take steps to protect investors
following its recent approval of the listing and trading of certain spot
Bitcoin exchange-traded products (ETPs).”

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“The SEC’s approvals have provided a green light
for Wall Street to sell volatile cryptocurrency investments to ordinary
Americans through their brokerage and retirement accounts.”

Senators Reed and Butler highlighted findings from a
survey by FINRA revealing that 70% of brokers’ communications with retail
investors violated fair disclosure rules.

Specifically, the legislators expressed alarm over
brokers falsely equating cryptocurrency with cash and providing misleading
explanations of cryptocurrency risks. Such deficiencies raise concerns about
incomplete and deceptive information regarding Bitcoin ETPs.

Advertisement

Risk Factors

The senators argue that labeling spot Bitcoin ETFs as such obscures important characteristics,
potentially misleading retail investors. They stressed the need for investors
to understand the differences between ETPs and traditional funds.

Additionally, Reed and Butler expressed skepticism
about the integrity of cryptocurrencies , particularly highlighting Bitcoin’s
vulnerabilities and susceptibility to fraudulent schemes. They warned of the risks retail investors could face
from ETPs linked to cryptocurrencies, especially those prone to price
manipulation.

In January, the SEC approved 11 spot Bitcoin ETFs.
This approval happened after years of anticipation and rejections, signaling a
significant shift in how investors can access and engage with cryptocurrencies
on traditional financial platforms.

The approval of spot Bitcoin ETFs simplifies retail
investors’ access to cryptocurrencies, enabling them to trade crypto through
their brokerage accounts. This eliminates the need for separate crypto exchanges
and mitigates risks associated with direct holdings, such as security breaches
and fraud.

Advertisement

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Bitcoin Mining Promises Under Fire as SEC Alleges $48.5M Investor Funds Were Misused

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Bitcoin Mining Promises Under Fire as SEC Alleges .5M Investor Funds Were Misused
Federal regulators are tightening the vise on crypto investment schemes, spotlighting alleged fraud tied to bitcoin mining that raised nearly $100 million while misleading thousands of investors about operations, capacity and the use of their money.
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The Cryptocurrency That Could Be About to Explode 1,000% | The Motley Fool

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The Cryptocurrency That Could Be About to Explode 1,000% | The Motley Fool

This tiny AI coin could be ready to skyrocket in 2026.

It’s slim pickings in the crypto market right now, with nearly every cryptocurrency down 25% or more over the past 90 days. But if you’re willing to dig for bargains and hold your nose at the same time, it’s possible to come up with some potential blockbuster plays for 2026.

My favorite pick right now is Artificial Superintelligence Alliance (FET 0.25%), down 68% over the past 90 days, and more than 80% for the year. This is exactly the type of beaten-down cryptocurrency that could be ready to explode higher by 1,000% or more over the next 12 months.

Rules for picking 1,000% winners

In order for any cryptocurrency to soar 1,000% or more within a relatively short period of time, it needs to meet a few key criteria. First of all, it needs to be dirt cheap — that’s the only way to attract speculative retail money. So, as a first cutoff, let’s narrow our search to beaten-down cryptos trading for $1 or less.

Second, the cryptocurrency needs to be in a red-hot sector or backed by a red-hot investment thesis. Within the blockchain and crypto world, there are plenty of potential hot ideas to choose from, including real-world asset tokenization, stablecoins, and decentralized finance (DeFi).

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But let’s face facts here: If you try explaining real-world asset tokenization or stablecoins to your friends and family over the winter holidays, you’ll probably be met with a very frosty reception. The investment narrative needs to be easy to grasp and easy to explain. And I can’t think of a better one right now than artificial intelligence (AI).

Image source: Getty Images.

So let’s further narrow our search down to so-called AI coins. This was once a red-hot category, and includes some major names like Bittensor, Render, and Artificial Superintelligence Alliance (FET 0.25%).

The case for buying Artificial Superintelligence Alliance

Of these AI coins, the only one that’s trading for less than a buck right now is Artificial Superintelligence Alliance (the cryptocurrency formerly known as Fetch.ai). It has a super-low discount price of $0.20 — almost as cheap as some meme coins. In order for FET to explode in price by 1,000%, all investors need it to do is hit a price of $2.20.

Fetch Stock Quote

Today’s Change

(-0.25%) $-0.00

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Current Price

$0.21

Thankfully, it has already done that in the past. In March 2024, Artificial Superintelligence Alliance hit an all-time high of $3.47. So, getting back to a price level of $2.20 may not be as insurmountable as it seems at first.

Moreover, the crypto (via the involvement of Fetch.ai in the alliance) is at the forefront of the hot new field of agentic AI, so there’s plenty of long-term growth potential.

Just keep in mind that there’s a big reason the price of Artificial Superintelligence Alliance has cratered by nearly 95% over the past 18 months. Simply put, investors have given up on the “alliance” that was supposed to create the world’s foremost AI coin.

The multistep merger process that was supposed to result in a single token called ASI has gone on much longer than expected. It has also been much messier than many people expected. In October, Ocean Protocol — one of the three big AI players involved — finally pulled out of the alliance, and that sent the price of FET tumbling.

What can investors expect in 2026?

As recently as December 2024, the price of Artificial Superintelligence Alliance was around $2. That’s why I’m optimistic about a potential rebound in price in 2026. Crypto traders have likely overreacted and are now dumping this AI coin indiscriminately.

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That being said, a 1,000% surge in price is by no means guaranteed. It’s quite possible that the price of Artificial Superintelligence Alliance could go to zero. So, buckle up now if you plan to invest in this AI coin — the path ahead is likely to be filled with turbulence and stomach-churning moves up and down.

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China Discovers ‘Largest’ Undersea Gold Deposit in Asia as State Mining Ambitions Expand

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China Discovers ‘Largest’ Undersea Gold Deposit in Asia as State Mining Ambitions Expand
China says it has uncovered Asia’s largest undersea gold deposit, a massive offshore find that strengthens domestic supply, reshapes regional resource rankings, and highlights Beijing’s accelerating push to secure strategic minerals.
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