US financial regulators warn against crypto exposure in retirement accounts


Three financial watchdogs in the United States have issued a warning to investors considering certain individual retirement accounts with exposure to cryptocurrencies.

In a Feb. 7 notice, the United States Securities and Exchange Commission’s Office of Investor Education and Advocacy, the North American Securities Administrators Association, and Financial Industry Regulatory Authority said self-directed individual retirement accounts, or IRAs, may include assets with potential risks, including cryptocurrencies. According to the agencies, some of the aforementioned IRAs could offer exposure to crypto assets that qualify as securities “without SEC registration or a valid exemption from registration” and without providing the information necessary to make informed decisions on investments.

“Some self-directed IRAs may offer investments in ‘crypto assets’ such as ‘virtual currencies,’ ‘coins,’ and ‘tokens’,” said the notice. “Many of the trading platforms for these crypto assets refer to themselves as ‘exchanges,’ which may give investors the…

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