## SEC Commissioner Highlights Cryptocurrency Investor Protection Deficiencies U.S. Securities and Exchange Commission (SEC) Commissioner Caroline Crenshaw, known for her cautious stance on cryptocurrency, recently voiced serious concerns regarding the inadequate investor protection measures within the crypto market. Speaking at a cryptocurrency task force roundtable, Crenshaw emphasized the lack of regulatory oversight. She pointed out that most cryptocurrency trading platforms operate without registration from regulatory agencies. This contrasts sharply with traditional finance, where brokerage, clearing, and custody are distinct functions designed to prevent conflicts of interest. Crenshaw warned that many investors mistakenly believe their crypto assets are protected like traditional investments. In reality, these holdings are often treated as exchange assets during bankruptcy, and are not covered by FDIC or SIPC insurance. This significant gap between investor expectations and the realities of cryptocurrency asset protection underscores the need for increased regulatory clarity and robust investor education. ```