Todd R. Kornfeld, of counsel in the Financial Services Practice Group of Pepper Hamilton, was quoted in the March 7, 2018 CNN article, "Bitcoin Plunges After SEC Seeks to Rein in Cryptocurrencies." The article discusses the Securities and Exchange Commission's (SEC'S) warning to cryptocurrency traders to only buy and sell cryptocurrency on exchanges registered with the SEC.
This could really shake up the market, according to Todd Kornfeld, a financial services attorney at Pepper Hamilton.
"Liquidity is important for many holders of tokens, coins and cryptocurrencies, and if this SEC activity reduces access to the existing token, coin and cryptocurrency markets, that could result in increased volatility in the trading and pricing of tokens, coins and cryptocurrencies," Kornfeld said.
But the volatility and the SEC scrutiny shouldn't come as a surprise to those scrutinizing these markets, said Kornfeld. The SEC warned investors last year to be on the lookout for "potential scams" involving ICOs. It busted "pump and dump" schemes, in which alleged fraudsters lure investors, take their money, and run.
"It's not surprising that this has happened," said Kornfeld. "It's a logical conclusion."