The U.S. Securities and Exchange Commission (SEC) has echoed the recent warning on cryptocurrencies issued by the North American Securities Administrators Association (NASAA).

In a joint statement, SEC Chairman Jay Clayton, Commissioner Kara M. Stein, and Commissioner Michael S. Piwowar said that NASAA’s release is a “timely and thoughtful reminder to Main Street investors to exercise caution.”

In a release dated January 4th, NASAA cautioned Main Street investors against cryptocurrencies, initial coin offerings (ICOs) and related investment products. It said that cryptocurrencies are not backed by any central bank and are subject to little or no regulation.

A NASAA survey showed that 94 percent of state and provincial securities regulators believe there is a “high risk of fraud” involving cryptocurrencies. Regulators were also unanimous in their view that more regulation is needed for cryptocurrency to provide greater investor protection. Last month, NASAA identified ICOs and cryptocurrency-related investment products as emerging investor threats for 2018.

“Investors should go beyond the headlines and hype to understand the risks associated with investments in cryptocurrencies, as well as cryptocurrency futures contracts and other financial products where these virtual currencies are linked in some way to the underlying investment,” said Joseph P. Borg, NASAA President and Director of the Alabama Securities Commission.

The SEC commended NASAA’s release and said that it is pursuing violations and cautioned investors that “if you lose money, there is a substantial risk that our efforts will not result in a recovery of your investment.”