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QUICK TAKE: Mitchell Silberberg & Knupp’s Patel on SEC Statement on Digital Exchanges

Traders Magazine Online News, March 8, 2018

John D'Antona Jr.

Following Wednesday’s investor alert filed by the Securities and Exchange Commission regarding digital-currency exchanges, Nimish Patel, a securities lawyer with Mitchell Silberberg & Knupp (MSK) shares his views with Traders Magazine.

The investor alert can be found by clicking here. 

“The SEC wants to prohibit retail investors from investing in the super risky cryptocurrencies, and the most effective way to do this is to cut off their ability to buy and sell by taking down the exchanges,” Patel said.

He added that it would be too time-consuming for the SEC to go after every ICO company and so it's more effective to go after the few exchanges and kill (or regulate) the supply chain.

“The SEC generally doesn't have a problem when accredited investors buy cryptocurrencies. However, it doesn’t want accredited investors flipping cryptocurrencies to unaccredited investors, Patel explained. “Since the exchanges currently allow for this to happen, the SEC wants them regulated.”

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