SEC chairman: We're not undermining bitcoin, just warning about its risks

The Securities and Exchange Commission is not trying to undermine the potential benefits of cryptocurrencies but instead is trying to raise awareness that many promoters of bitcoin and other coins and tokens might be running afoul of securities laws, SEC Chairman Jay Clayton said Monday.

“These warnings are not an effort to undermine the fostering of innovation through our capital markets – America was built on the ingenuity, vision and spirit of entrepreneurs who tackled old and new problems in new, innovative ways,” Clayton said in testimony prepared for a Senate Banking Committee hearing on virtual currencies scheduled for Tuesday.