by Divonne Smoyer, Roger Gibboni, Christine Parker, and Jonathan Marcus
One in 10 Americans invested in crypto currencies this year, so it’s no surprise that state and federal agencies are jockeying up to regulate and enforce crypto markets.
That’s because any relatively new (and poorly understood) financial product – in which a significant number of consumers are investing large amounts – is going to draw the attention of regulators and enforcement agencies.
State attorneys general (AGs) are no exception. Now some state AGs are asking how they may investigate potential consumer harms associated with crypto currencies. State AGs have established a significant national footprint in consumer protection, including and particularly over investment products.