Share this article
CFTC Says Buyer Beware in New ICO Advisory
The Commodity Futures Trading Commission (CFTC) has issued a warning on initial coin offerings (ICOs) and crypto-assets.
By Stan Higgins
Updated Sep 13, 2021, 8:10 a.m. Published Jul 16, 2018, 10:00 p.m.
Make us preferred on Google
The Commodity Futures Trading Commission (CFTC) has issued an advisory on initial coin offerings (ICOs) and crypto-assets, warning would-be buyers to do their homework before investing.
Its "Customer Advisory: Use Caution When Buying Digital Coins or Tokens" mirrors, in some ways, words of caution that have come out of the U.S. Securities and Exchange Commission. That agency's most famous warning to date is, perhaps, its fake "HoweyCoin" ICO website, which humorously warned investors about the risk involved in token sales, particularly those that offer outsized returns.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
And while the SEC has focused on the side of crypto-assets that may run afoul of securities law – with some synergies between the two sides taking place – the CFTC appears to be moving to clarify where such assets may be considered the types of financial products it regulates.
The agency noted that "digital tokens and coins can also be derivatives or commodities, depending on how they are structured." Back in 2015, the CFTC first said that it considers cryptocurrencies like bitcoin to be commodities, and today's missive indicates that some of the crypto-assets coming out in the market today could fall under the agency's purview.
To date, much of the CFTC's public-facing work in this area has been focused on targeting fraud within the U.S.
The agency has filed several civil lawsuits since the start of the year, and the CFTC is reportedly involved in an ongoing probe into cryptocurrency market manipulation.
Image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Here’s why bitcoin’s is failing its role as a 'safe haven' versus gold
Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash.
What to know:
- During recent geopolitical tensions, Bitcoin lost 6.6% of its value, while gold rose 8.6%, demonstrating bitcoin's vulnerability in times of market stress.
- Bitcoin behaves more like an "ATM" during uncertain times, with investors quickly selling it to raise cash, contrary to its reputation as a stable digital asset.
- Gold remains the preferred hedge for short-term risks, while bitcoin is better suited for long-term monetary and geopolitical uncertainties that unfold over years.
Top Stories
