A Look at SEC, FINRA and Other Issues
Cryptocurrency experienced massive and unprecedented growth in 2017, rising from a total market cap of $18.8 billion in January 2017 to $598.5 billion in December 2017. As of February 6, 2018, there were over 1,500 virtual currencies. The emergence of cryptocurrency has caused concern for regulators, who see rampant growth and speculation as a danger to unknowing investors.
Cryptocurrency is a digital, encrypted currency that is not issued by any government or other central authority. Theoretically, this independence allows cryptocurrency to grow naturally, free from regulation. The most popular cryptocurrency, Bitcoin, was created in 2009. Bitcoin is used to facilitate transactions securely and anonymously, without the usual involvement of financial institutions. Companies such as Overstock.com, Expedia, Dish Network and Microsoft accept Bitcoin as a payment option.
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