Catenaa, Thursday, July 24, 2025- A coalition of Spanish lawmakers is urging the country’s financial regulator to mandate “traffic light” style risk warnings on cryptoassets, aiming to help retail investors clearly identify the risks of digital tokens.
The Sumar group, a left-wing political coalition with 31 deputies in Spain’s Congress, has formally proposed that the National Securities Market Commission (CNMV) adopt a color-coded system to label cryptoassets based on risk and regulatory oversight.
Under the plan, cryptoassets would receive:
Green for registered, supervised assets with stable market performance
Yellow for tokens with limited backing or moderate volatility
Orange for unsupervised, high-risk coins
Red for speculative assets lacking identifiable issuers or material backing
Sumar criticized many tokens on exchanges for lacking material value and described crypto trading as closer to “betting” than investing. The group also wants to rename coins like Bitcoin and Ethereum as “crypto bets” or “unbacked assets” to emphasize their speculative nature.
The lawmakers propose that banks and exchanges be required to show clear, visually prominent risk warnings before retail clients purchase any cryptoassets, regardless of classification. They drew comparisons to warning labels used in gambling and tobacco sales.
Additionally, Sumar advocates for tighter rules on algorithmic and AI-powered trading platforms to restrict retail investor access, citing concerns over risk and market fairness.
The proposal reflects growing regulatory caution in Spain as crypto adoption rises and mainstream banks increasingly enter the market.
