Massachusetts’ top securities regulator said his office is qualified to issue a warning on bitcoin because the digital currency is “entirely speculation.”
“It doesn’t pass the smell test,” William Galvin, secretary of the Commonwealth of Massachusetts, said Wednesday on CNBC “Fast Money.”
“There is no product here. This is entirely speculation. That’s already been proven by the high gyrations of the value,” Galvin said. “It’s also subject to manipulation, because no one can explain it no one can control it.”
Bitcoin has soared more than 1,500 percent over the last 12 months to near $15,340 on Wednesday, according to Coinbase. That’s off a record high above $19,800 hit in mid-December.
On Dec. 13, Galvin issued a statement listing seven reasons why bitcoin may be a “worthless product.” The document is likely the first investor advisory on bitcoin from a state.
Federal regulators have also stepped up their warnings on cryptocurrencies and related investments this month.