SEC warns some digital token exchanges may be "unlawful"

The U.S. Securities and Exchange Commission is warning investors that some self-designated "exchanges" for cryptocurrencies and digital tokens are unlawful and shouldn't be trusted to operate with as much integrity as regulated ones.

Why it matters: The commission has been increasingly cracking down on digital tokens, "initial coin offerings" and their issuers and other parties, citing concerns for investors. In January, Chairman Jay Clayton expressed similar concerns about exchanges, pointing out that "the opportunity for price manipulation is at orders of magnitude."