Jim Cramer Expects SEC to ‘Do a Roundup’ of Non-Compliant Crypto Firms Urges Investors to Get Out of Crypto Now Cryptocurrency

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Mad Money host Jim Cramer says he expects the U.S. Securities and Exchange Commission (SEC) to do a roundup of crypto companies that aren’t complying with regulations . Expecting the SEC to “sweep it all away,” Cramer urges investors to “get out” of crypto now.

Jim Cramer’s Latest Crypto Warnings

CNBC’s Mad Money host Jim Cramer is back with more warnings for crypto investors. Cramer is a former hedge fund manager who co-founded Thestreet.com, a financial news and literacy website.

Following a joint statement on crypto risks from the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC), Cramer said on CNBC on Wednesday:

I think these statements are the beginning of what I asked for, which is that the SEC is going to do a roundup of all those [crypto firms] which are not compliant.

Quoting John Stark, who served as an attorney for more than 18 years in the SEC’s Enforcement Division, Cramer pointed out that Stark is “now calling for a sweep.” The Mad Money host pointed out:

He said the SEC was going to wipe it all out, that’s why I tell everyone get out of these.

“I see a lot of people think, like John Stark, that this is just a giant scam,” Cramer continued. He added that he expects former FTX CEO Sam Bankman-Fried (SBF) to be important to the SEC roundup.

Cramer clarified:

I am not calling for a crypto meltdown. I call for the collapse of those involved in the Ponzi scheme.

Despite the warning signs, Cramer explained that “people are bidding” on cryptocurrency prices. He then warned investors to get their money out of crypto while they could.

The Mad Money host used to invest in bitcoin, ether and non-fungible tokens (NFTs), but it sold off all of its crypto holdings last year. He advised investors to avoid investing in speculative assets, including crypto, as the Federal Reserve continues to tighten the economy. Earlier this month, he advised investors to get out of crypto, stressing that it’s never too late to get out of “an awful position.” He also said he won’t touch crypto in a million years.

Regarding why bitcoin price is so resilient at the $16,000 high, Cramer said on Friday, “Well, I’ll tell you what Stark said. Because it’s bogus and a scam. The Mad Money host concluded that crypto prices are “backed by people who want them backed, and that’s all there is.”

What do you think of Jim Cramer’s take on crypto? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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