• Jim Cramer, host of CNBC’s Mad Money show, has warned crypto investors that the U.S. Securities and Exchange Commission (SEC) is likely to do a roundup of non-compliant crypto firms.
• Cramer is citing John Stark, a former SEC attorney, who believes that the SEC will “sweep everything”.
• Cramer is urging investors to get out of crypto now before the SEC roundup takes place.
Jim Cramer, the host of CNBC’s Mad Money show, has issued a stern warning to crypto investors: the U.S. Securities and Exchange Commission (SEC) is likely to do a roundup of non-compliant crypto firms. Cramer, who is a former hedge fund manager and co-founder of Thestreet.com, a financial news and literacy website, believes that this roundup will take place following a joint statement from the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) about the risks of investing in crypto.
During his appearance on CNBC Wednesday, Cramer was citing John Stark, who served as an attorney for over 18 years in the SEC’s Enforcement Division. Stark is now calling for a sweep of the crypto space. Cramer stated: “He said the SEC is going to sweep everything, which is why I am telling everybody: get out of these.” The Mad Money host went on to emphasize that he is not calling for a crypto collapse, but rather a collapse of the people in on the Ponzi scheme.
Despite the warnings from Cramer, he noted that people are still bidding up the prices of cryptocurrencies. He urged investors to act quickly and get their money out of crypto before the SEC roundup takes place. Cramer concluded: “I’m telling you, get out of these. I don’t want you to be one of the Ponzi players that winds up getting taken out.”
It remains to be seen whether the SEC will take action against non-compliant crypto firms, but Cramer’s warnings should not be taken lightly, especially given his expertise in the financial markets. It’s important for investors to remember that investing in crypto is a risky endeavor, and they should only invest what they can afford to lose.