The SEC is warning against FOMO as crypto mania intensifies, even as institutional adoption skyrockets and U.S. policy shifts cement digital assets as a financial cornerstone.
SEC Cautions Against FOMO as Crypto Sees Relentless Institutional Inflows
The U.S. Securities and Exchange Commission (SEC) reminded investors this week to steer clear of emotional decision-making driven by market hype. In a post shared May 13 on social media platform X, the SEC cautioned about fear of missing out (FOMO), writing:
Don’t fall for FOMO! Avoid the fear of missing out by sticking with a long-term saving and investing plan. It may be tempting, but that popular or trendy investment opportunity may not be the best one to help you meet your financial goals.
The X post references an article from Lori Schock, director of the SEC’s Office of Investor Education and Advocacy, who emphasized that resisting FOMO—fear of missing out—is critical for maintaining a sound investment strategy.
Schock acknowledged the surge in online investing and the rising popularity of speculative assets like cryptocurrencies, meme stocks, and non-fungible tokens (NFTs). She stressed that understanding these modern investments can feel daunting, noting that digital assets include cryptocurrencies, coins, and tokens issued in initial coin offerings (ICOs). Meme stocks, she explained, often gain value based on internet popularity or social sentiment, not on a company’s fundamentals. NFTs are digital items marked with unique codes that confirm ownership and are stored on a blockchain—a type of digital ledger. These tokens often represent ownership of digital items such as artwork, sports memorabilia, or photographs.
Amid this evolving financial landscape, Schock urged investors to focus on fundamentals. “Not every investment opportunity is right for everyone. Resist temptation and remember our phrase, ‘NO GO to FOMO.’” She stressed the value of diversified portfolios and the importance of staying invested: “It’s time in the market that counts, not timing the market.”
To withstand inevitable market fluctuations, Schock advised spreading investments across asset types and sectors. Her final reminder to investors underscored the need for discipline:
Say ‘NO GO to FOMO’−stick with your long-term plan and don’t make investment decisions based on a fear of missing out.
The cryptocurrency market is experiencing unprecedented growth, with bitcoin surpassing $100,000, driven by substantial inflows into U.S. exchange-traded funds (ETFs) and increasing institutional adoption from major asset managers and pension funds seeking exposure to digital assets. President Donald Trump’s administration has actively promoted the U.S. as a global leader in digital assets, establishing a Strategic Bitcoin Reserve and advocating for pro-crypto regulations aimed at solidifying America’s dominance in the sector. This bullish environment, underpinned by heightened institutional interest and favorable policy frameworks, has led to several bold predictions of bitcoin reaching $200,000 by the end of the year.