The U.S. Securities and Exchange Commission warns about the dangers of FOMO amid a surge in crypto mania, even as institutional adoption and U.S. policy changes solidify digital assets as a financial foundation.
The SEC warns about the dangers of FOMO amid continuous institutional flows into crypto.
The U.S. Securities and Exchange Commission (SEC) this week reminded investors to avoid emotional decisions driven by market hype. In a message posted on the social media platform X on May 13, the SEC cautioned against the fear of missing out (FOMO), stating:
Don’t give in to FOMO! Avoid the fear of missing out by sticking to a long-term savings and investment plan. It can be tempting, but that popular or trendy investment opportunity may not be the best for achieving your financial goals.
The post on X refers to an article by Lori Shock, Director of the SEC Office of Investor Education and Advocacy, who emphasized that resisting FOMO — the fear of missing out — is critically important for maintaining a sound investment strategy.
Shock acknowledged the rise of online investing and the growing popularity of speculative assets such as cryptocurrencies, meme stocks, and non-fungible tokens (NFTs). She emphasized that understanding these modern investments can seem complex, noting that digital assets include cryptocurrencies, coins, and tokens issued in initial coin offerings (ICOs). Meme stocks, as she explained, often gain value based on internet popularity or social sentiment rather than on fundamental company metrics. NFTs are digital items marked with unique codes that verify ownership and are stored on a blockchain — a type of digital ledger. These tokens often represent ownership rights to digital items such as artwork, sports memorabilia, or photographs.
Amid this evolving financial landscape, Shock urged investors to focus on fundamental principles. “Not every investment opportunity is right for everyone. Resist the temptation and remember our phrase: ‘Say NO to FOMO!’” She emphasized the value of diversified portfolios and the importance of staying invested: “Time in the market matters, not timing the market.”
To withstand inevitable market fluctuations, Shock advised spreading investments across asset types and sectors. Her final reminder for investors highlighted the necessity of discipline:
Say ‘NO to FOMO!’ — stick to your long-term plan and don’t make investment decisions based on the fear of missing out.
The cryptocurrency market is experiencing unprecedented growth, with Bitcoin surpassing $100,000, thanks to significant inflows into U.S. exchange-traded funds (ETFs) and increasingly active adoption by major asset managers and pension funds seeking to gain access to digital assets. The administration of President Donald Trump actively promoted the U.S. as a global leader in digital assets, creating a Strategic Bitcoin Resident and advocating for pro-crypto regulations aimed at strengthening America's dominance in this sector. This bullish environment, supported by heightened institutional interest and favorable policy frameworks, has led to several bold predictions that Bitcoin will reach $200,000 by the end of the year.
