Billionaire fund manager Tim Draper shares two red flags to avoid 90% of bad investments. First, he warns against easily imitable strategies that lead to a race to the bottom. Second, he cautions about regulatory issues, citing the SEC’s crackdown on crypto trading platforms for alleged securities violations.

The recent legal battles between crypto exchanges like Coinbase, Kraken, Ripple, and Binance and the SEC have raised questions about the classification of assets like XRP and ETH. The SEC’s allegations of offering unregistered crypto securities have put a spotlight on the industry’s regulatory challenges.

President Trump has vowed to make the U.S. the “crypto capital of the world,” signaling a shift in regulatory approach by the new SEC administration. Both the government and the industry are working towards achieving increased regulatory clarity around crypto assets to foster growth and innovation.

The week of July 14th is dubbed “Crypto Week” as Congress considers key bills like the CLARITY Act, the Anti-CBDC Surveillance State Act, and the GENIUS Act. The outcome of these legislative efforts will have a significant impact on the future of crypto assets not only in the U.S. but globally.

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